CLBILS and Compounding factor: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Create page. Sources: linked pages.)
 
imported>Doug Williamson
(Standardise appearance of page)
 
Line 1: Line 1:
''Business continuity - pandemic - UK.''
(CF).  


Abbreviation for Coronavirus Large Business Interruption Loan Scheme.
A number greater than one which we multiply a present value by, to work out its [[Future Value]] (FV) as:


FV = CF x present value.


==See also==
*[[Business continuity plan]]
*[[Contingency plan]]
*[[Coronavirus Business Interruption Loan Scheme]]
*[[Coronavirus Larage Business Interruption Loan Scheme]]
*[[Coronavirus Job Retention Scheme]]
*[[COVID-19]]
*[[COVID-19 Corporate Financing Facility]]


[[Category:Cash_management]]
The periodic Compounding Factor is calculated from the periodic yield as:
[[Category:Financial_products_and_markets]]
 
[[Category:Liquidity_management]]
CF = ( 1 + periodic yield ).
 
 
'''Example'''
 
Annual effective yield (r) = 6%.
 
Number of years in the total period (n) = 2.
 
Then:
 
Compounding Factor = ( 1 + r )<sup>n</sup>
 
= 1.06<sup>2</sup>
 
= 1.1236.
 
 
== See also ==
* [[Compounding effect]]
* [[Discount factor]]
* [[Future value]]
* [[Present value]]

Revision as of 11:52, 21 March 2015

(CF).

A number greater than one which we multiply a present value by, to work out its Future Value (FV) as:

FV = CF x present value.


The periodic Compounding Factor is calculated from the periodic yield as:

CF = ( 1 + periodic yield ).


Example

Annual effective yield (r) = 6%.

Number of years in the total period (n) = 2.

Then:

Compounding Factor = ( 1 + r )n

= 1.062

= 1.1236.


See also