time-value-of-money
Time Value of Money
Purpose
This skill enables Claude to perform present value, future value, and discounted cash flow calculations across all standard compounding conventions. It covers annuities, perpetuities, amortization schedules, NPV, and IRR, providing the foundational building blocks for virtually all financial valuation and planning tasks.
Layer
0 — Mathematical Foundations
Direction
both (retrospective for valuing past cash flows, prospective for projecting future values)
When to Use
- Discounting future cash flows
- Building amortization tables
- Comparing investments with different timing
- Calculating loan payments
- NPV or IRR analysis
Core Concepts
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