The book :
( a ) introduces the concept of ‘ time value of money ’ which lays the foundation for the building blocks of financial management theory and practice ;
( b ) elucidates the techniques of ‘ compounding ’ and ‘ discounting ' in respect of :
( i ) a single cash flow ,
( ii ) series of even cash flows [ 16 types of annuities ( or perpetuities ) such as ordinary annuity ( or perpetuity ) , annuity ( or perpetuity ) due , deferred ordinary annuity ( or perpetuity ) , growing ordinary annuity ( or perpetuity ) , deferred growing ordinary annuity ( or perpetuity ) etc., are discussed ] , and
( iii ) series of uneven cash flows ,
considering annual compounding , intra - annual compounding with finite frequencies , and intra - annual compounding with infinite frequencies ( or continuous compounding ) ;
( c ) illustrates 38 number of problems with solutions .