imported>Doug Williamson |
imported>Doug Williamson |
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| __NOTOC__
| | The system of law regulating the interrelationship of sovereign states and their rights and duties with regard to one another. |
| A cost of borrowing - or rate of return - expressed as:
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| *The excess of the amount at the end over the amount at the start
| | In addition, certain international organisations, companies and sometimes individuals (e.g. in the sphere of human rights) may have rights or duties under international law. |
| *Divided by the amount at the end
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| ==Example 1==
| | Also known, more simply, as ''international law''. |
| GBP 1 million is borrowed.
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| GBP 1.03 million is repayable at the end of the period.
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| The periodic discount rate (d) is:
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| d = (End amount - start amount) / End amount
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| = (1.03 - 1) / 1.03
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| = 0.029126
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| = '''2.9126%'''
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| ==Example 2==
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| GBP 0.97 million is borrowed or invested
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| GBP 1.00 million is repayable at the end of the period.
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| The periodic discount rate (d) is:
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| (End amount - start amount) / End amount
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| = (1.00 - 0.97) / 1.00
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| = 0.030000
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| = '''3.0000%'''
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| ==Example 3==
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| GBP 0.97 million is borrowed.
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| The periodic discount rate is 3.0000%.
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| Calculate the amount repayable at the end of the period.
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| ===Solution===
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| The periodic discount rate (d) is defined as:
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| d = (End amount - start amount) / End amount
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| d = 1 - (Start amount / End amount)
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| ''Rearranging this relationship:''
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| (Start amount / End amount) = 1 - d
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| Start amount = End amount x (1 - d)
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| Start amount / (1 - d) = End amount
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| End amount = Start amount / (1 - d)
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| ''Substituting the given information into this relationship:''
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| End amount = GBP 0.97m / (1 - 0.030000)
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| = GBP 0.97m / 0.97
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| = '''GBP 1.00m'''
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| ==Example 4==
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| An investment will pay out a single amount of GBP 1.00m at its final maturity after one period.
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| The periodic discount rate is 3.0000%.
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| Calculate the amount invested at the start of the period.
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| ===Solution===
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| As before, the periodic discount rate (d) is defined as:
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| d = (End amount - start amount) / End amount
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| d = 1 - (Start amount / End amount)
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| ''Rearranging this relationship:'' | |
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| (Start amount / End amount) = 1 - d
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| Start amount = End amount x (1 - d)
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| ''Substitute the given data into this relationship:''
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| Start amount = GBP 1.00m x (1 - 0.030000)
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| = '''GBP 0.97m'''
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| | Not to be confused with ''private international law'', also known as ''conflict of law''. |
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| ==See also== | | ==See also== |
| | * [[International law]] |
| | * [[Private international law]] |
| | * [[Conflict of law]] |
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| *[[Effective annual rate]]
| | [[Category:Compliance_and_audit]] |
| *[[Discount rate]]
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| *[[Nominal annual rate]]
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| *[[Periodic yield]]
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| *[[Yield]]
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The system of law regulating the interrelationship of sovereign states and their rights and duties with regard to one another.
In addition, certain international organisations, companies and sometimes individuals (e.g. in the sphere of human rights) may have rights or duties under international law.
Also known, more simply, as international law.
Not to be confused with private international law, also known as conflict of law.
See also
