Multiple kinds of investment, a bond, a stock, and we'll talk about those.

You put $10,000 every year.

Why 10,000 fixed amount?

Well nothing is forcing you to put 10,000 every year.

It can be 11,000 one year and 9,000 the other, but

early enough to make life simple perhaps many people tend to

put away a certain amount of money every year fro things they need in the future.

So the notion of a pension fund is at some point I'm going to retire and

I need some money so you out away 10, 000 every year.

You plan to retire in about 40 years and expect to earn 8% on your portfolio.

So what have I given you?

I have given you everything you need.

I've given you pmt or c which is 10,000.

I've given you a number of years left for you to retire.

40.

And I've given you an interest rate that you're likely

to earn on your portfolio, which means where you put your money.

A bank, whatever, we'll talk about that in a second, but

let's just focus on this, and try to do this problem.

I hope you've been listening to me.

And I hope you've been paying attention because if you pay attention to a problem

it gets to be a little intense, and I will do the problems with you.

And I have promised myself today I'll spend a lot of time just doing

problems with you because that's how you learn and another piece of advice.

I've given you textbooks to read.

That you can go get and read.

They can be second-hand, they can be whatever.

The fundamental principles of finance have been known since we were in the cave.

So just remember that what you are trying to do is focus on the fundamentals.

So read whatever you want.

If the video doesn't satisfy your curiosity, but

the video is trying to be self sufficient.

So let's do this.

Let's now start doing the problem.

And what I'm going to do is I'm going to do two problems for

future value, two problems for present value.

But I'll take breaks with you.

So I'll let you know that maybe it's time to take some time off,

get some coffee, go jog around the apartment building where you live.

Or talk to your friend, or watch a video on YouTube, you know?

Why not?

Okay, so let's get started.