Periodic discount rate and Remittance: Difference between pages

Revision as of 10:04, 30 May 2015

@@ Line 1: / Line 1: @@
-A cost of borrowing - or rate of return - expressed as:
+#Payment.
+#A generic term for a payment or a receipt.
-*The excess of the amount at the end over the amount at the start
-*Divided by the amount at the end
+== 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.
-The periodic discount rate (d) is:
-(End amount - start amount) / End amount
-= (1.03 - 1) / 1.03
-= 0.029126
-= 2.9126%
-==Example 2==
-GBP 0.97 million is borrowed or invested
-GBP 1.00 million is repayable at the end of the period.
-The periodic discount rate (d) is:
-(End amount - start amount) / End amount
-= (1.00 - 0.97) /  1.00
-= 0.030000
-= 3.0000%
-==See also==
-*[[Effective annual rate]]
-*[[Discount rate]]
-*[[Periodic yield]]
-*[[Yield]]