Peer Review

Time Value of Money

Material Detail page

Reviewed:: Apr 19, 2011 by Business

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Ratings

Overall Rating:

Content Quality:

Effectiveness:

Ease of Use:

Overview:: The web-based presentation is an explanation overview of the Time Value of Money, the Time Value of Money calculation, and the components that make-up the calculation. This presentation will be effective for community college or 100 level bachelors’ students attending an economics or finance course. The presentation will provide knowledge growth or refresher knowledge growth. The site is a simple 1-page lesson plan to introduce the compromise made between using the money today versus using the money tomorrow. It covers introductory concepts like opportunity cost of money with respect to time and the two types of interest rates namely simple interest and compound interest. It ends with an activity that students can work on their own or in groups and can check their answers with the Instructor upon completion.
Type of Material:: Web-based presentation
Recommended Uses:: • This case study can be used in class as part of a lecture review after the concepts have been introduced. • This can also serve as a quick review tool when preparing for review, tests or examinations outside the classroom.
Technical Requirements:: Internet Browser: IE, Mozilla/Firefox
Identify Major Learning Goals:: • The student will understand economic or financial concepts like value of money with respect to time and the two types of interest rates namely simple interest and compound interest. • The student has the opportunity to work on a followed up activity on their own or in groups and can check their answers with the Instructor upon completion. • The Instructor has the exact same content with the answers to the followed up activity at http://www.econedlink.org/lessons/index.php?lid=37&type=educator .
Target Student Population:: Community college or 100 level bachelor’s program for a finance or economics course.
Prerequisite Knowledge or Skills:: Basic computer skills and foundational knowledge of the concepts of finance or economics at micro and macro levels.

Content Quality

Rating:
Strengths:: • Provides learning of the Time Value of Money in an easy to understand example format. • Provides an option to “Print the Lesson” • Provides simple examples of how Time Value of Money effects daily lives. • It is short, succinct and to the point for the target student population.
Concerns:: • Module was one page provided no supplemental examples • Lacked a “Help” option • Learner is confined to what is on the webpage. • Not much depth of explanation. • Does not meet the learning styles of students who are visual, aural and/or kinesthetic.

Potential Effectiveness as a Teaching Tool

Rating:
Strengths:: • Formula was easy to read and understand. • Allowed the learner to print the lesson to be retained for use in the future. • There is no learning objective identified which is a good thing be as then the content can be easily and flexibly used. On the instructor’s page at http://www.econedlink.org/lessons/index.php?lid=37&type=educator , there is a link to the Student Version as well as links to U.S. national and state standards. The standards are useful in ensuring that there is consistency in delivering the content. Plus, the instructor site has the answers to the followed-up activity that makes it easy for any other instructor to incorporate it in their lesson plan.
Concerns:: • Did not find an indication of what perquisite knowledge in finance and/or economics would be required for this presentation • Did not have a web calculator link for computing the time value of money calculation • Not a very dynamic presentation format

Ease of Use for Both Students and Faculty

Rating:
Strengths:: • The example provided has a scenario and provided a example of the time value of money calculation table. • Website was easy to connect to and easy to maneuver on the single page
Concerns:: • Content was straight text and a an example spreadsheet diagram • The material was presented in a mundane method, lacked interactivity few if any color in the content. • Not hands-on nor providing any audio experience.

Other Issues and Comments:: The PowerPoint presentation provides the learner with an explanation of the calculation of the Time Value of money. Learners will find it instructional and easy to understand.
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