### Dear NINJAs,

Do you now if **time value of money** is on the FAR exam?

If so, do they ask the very complex questions that I see in my review course? **– Terri**

Dear Terri,

Your CPA Review course may be over-doing it.

For the most part, the TVM calculations for FAR aren't as in-depth as they are for BEC, where topics like **Capital Budgeting** are tested.

For FAR, you will need to know the difference between two different cash flows using a table and pick the correct number.

An example from NINJA MCQ would be:

Make sure you know the difference between an *Annuity Due* and an *Ordinary Annuity*.

For example – with Lease Payments (from the NINJA Notes):

**Annuity Due**

o Payments begin at the start of the lease

o Think: Rent is Due at the first of the month

**Ordinary Annuity**

o Payments begin after the end of the first year

o Think: An annuity that pays you at end of year

**-The NINJAs**

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