Understand the concept of the time value of money. Understand the difference between an annuity and a single sum. Know how to affect the compounding periods and interest rate if an investment compounds more than once per year. Be able to read a problem and identify the five variables: N, I/Y, PV, PMT, FV and solve the problem. Be able to use the factor tables or the financial calculator to solve any TVM problem. Everyone should be able to determine which factor to use (PVA, PV$1, FVA, or FV$1). Be able to back into the PMT (payment). Be able to interpret the results of the TVM.