This book covers the mathematics of time value of money and mortgages by developing both elegant and easy to follow mathematical models. It breaches the gap between the derivation and application of the time value of money formula by exploring common applications in real estate, resource allocation (capital budgeting), and commercial loans. In most instances, a concept is introduced and a formula derived with the help of a time line diagram or a simple intuitive explanation. The general solution is immediately followed by an application, which clarifies exactly how the numbers fit into the sometimes complicated formula. In many cases, a slight twist is introduced to enable the reader to learn how to actually apply the formulas rather than just plugging in the numbers.