SERIES 66 ASKS QUESTIONS ON CONCEPTS RELATING TO TIME VALUE OF MONEY

Taking the Series 66 Exam? If yes, make sure that you are able to work problems regarding the Time Value of money, such as the net present value (NPV) and future value (FV). How do I know this? I know this because NASAA publishes Test Specifications for the Series 66 Exam, and Section I (A) (1) (1.1 - 1.3) specifically discusses concepts regarding Time Value of Money.

Bob Eder discusses discusses these concepts in his Study for the Series 66 Exam . Here is a sample problem involving NPV:

James is considering purchasing a business office building. He thinks that he could sell the building for  $1 million at the end of five years. Assume interest rates will hold steady at six percent for this period and interest is paid on a yearly basis. What is the net present value (NPV) of the $1,000,000 sales proceeds?

To solve for NPV of $1 million, here is the formula:

NPV = Future Amount/(1.06)^5

NPV 1,000,000/1.338

NPV= $747,258

Here is the link to NASAA's Test Specifications for the Series 66 Exam. See Section I (A) (1) (1.1-1.3) covering Time Value of Money.

Study for the Series 66 Exam is available from Amazon in both paperback and Kindle e-book versions. Here is the link to Bob Eder's Series 66 book on Amazon. 

For questions about Bob Eder's Series 66 Manual, Study for the Series 66 Exam, or questions in general about the Series 66 Exam, or about Time Value of Money, feel free to email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001. 

See Bob Eder's Author Page on Amazon.com.

P.S. Please consider posting a review of Bob Eder's Study for the Series 66 Exam on Amazon and/or Goodreads.



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