Paper 1 · Financial Maths ⏱ Tested in 3 exam questions since 2022 Lesson 3 of 8

Financial Maths 3 – Time value of money

This tutorial is for members

Read the lesson notes free below — subscribe to watch the full worked video and download the PDF.

Subscribe for full access · €199/yr

You’ll learn

  • Explain present vs future value — why money today is worth more than money later
  • Find the present value of a future amount using P = F/(1+i)ᵗ (divide, don't multiply)
  • Count compounding periods correctly: a monthly rate over 2 years means t = 24

Most recent exam questions

  • 2026 P1 Q2(b)(ii)
  • 2024 P1 Q7(b)(i)
  • 2023 P1 Q8(b)(i)
  • 2023 P1 Q8(b)(ii)
  • 2022 P1 Q7(c) — deferred

💬 Stuck on something in this lesson?

Send your question with this lesson’s name attached — you’ll get a reply by email.