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imported>Doug Williamson |
imported>Doug Williamson |
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| A cost of borrowing - or rate of return - expressed as: | | #Payment. |
| | #A generic term for a payment or a receipt. |
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| *The excess of the amount at the end over the amount at the start
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| *Divided by the amount at the end
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| | | == See also == |
| ==Example 1==
| | * [[Payment]] |
| GBP 1 million is borrowed.
| | * [[Receipt]] |
| | | * [[Remittance factory]] |
| 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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| (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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| ==See also== | |
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| *[[Effective annual rate]]
| |
| *[[Discount rate]] | |
| *[[Periodic yield]] | |
| *[[Yield]] | |
Revision as of 10:04, 30 May 2015
- Payment.
- A generic term for a payment or a receipt.
See also