Consumer Economics: Time Value of Dollars and Sense for Money Management

Badiru helps consumers understand the underpinning theories and principles of different loan scenarios and cash flow profiles. He covers cash flow diagrams, present value, future value, simple and compound interest rates, annual percentage rate, annuity, compounding of interest, capitalized cost, perpetual cash flow, rule of seventy-two, payback period, benefit-cost ratio, mortgage loan analysis, and equity breakeven point.

Consumer Economics offers the layperson important and useful information about interest rates, how to calculate their effect, and how to use this knowledge to their advantage. It communicates the importance of placing ones money in interest-bearing bank accounts or other investment vehicles to get the most from ones money.