imported>Doug Williamson |
imported>Doug Williamson |
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| __NOTOC__
| | ''Energy - sustainable finance - green finance''. |
| 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
| | Solar CSP is an abbreviation for Concentrating Solar Power energy generation. |
| *Divided by the amount at the end
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| ==Example 1==
| | Solar CSP systems use reflectors to focus and concentrate the sun's light energy, typically to raise the temperature of a heat-absorbing heat transfer fluid. |
| GBP 1 million is borrowed.
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| GBP 1.03 million is repayable at the end of the period.
| | The heat energy in the heat transfer fluid is then used in turn to generate electricity, for example through steam turbines. |
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| | Contrasted with Solar PV systems, which generate electricity directly. |
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| The periodic discount rate (d) is:
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| d = (End amount - start amount) / End amount
| | == See also == |
| | * [[Green finance]] |
| | * [[Renewables]] |
| | * [[Solar PV]] |
| | * [[Sustainable finance]] |
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| = (1.03 - 1) / 1.03
| | [[Category:The_business_context]] |
| | | [[Category:Corporate_finance]] |
| = 0.029126
| | [[Category:Investment]] |
| | | [[Category:Long_term_funding]] |
| = '''2.9126%'''
| | [[Category:Identify_and_assess_risks]] |
| | | [[Category:Manage_risks]] |
| | | [[Category:Risk_frameworks]] |
| ==Example 2==
| | [[Category:Risk_reporting]] |
| GBP 0.97 million is borrowed or invested
| | [[Category:Financial_products_and_markets]] |
| | | [[Category:Technology]] |
| 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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| ==See also==
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| *[[Effective annual rate]]
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| *[[Discount rate]]
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| *[[Nominal annual rate]]
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| *[[Periodic yield]]
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| *[[Yield]]
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Energy - sustainable finance - green finance.
Solar CSP is an abbreviation for Concentrating Solar Power energy generation.
Solar CSP systems use reflectors to focus and concentrate the sun's light energy, typically to raise the temperature of a heat-absorbing heat transfer fluid.
The heat energy in the heat transfer fluid is then used in turn to generate electricity, for example through steam turbines.
Contrasted with Solar PV systems, which generate electricity directly.
See also
