What are the two types of discounts?

Q: Define Discount Rate.

A: A discount rate is rate which is used to bring future value of cash flow to the present value.It is…

Q: What are the special forms of payment? Give examples for each.

A: Unless otherwise stated, the obligation to deliver begins when the contract is signed. The creditor…

Q: Define discount on forward rate

A: Answer: For a purchase, a forward rate is a contract price that will be fulfilled at a date…

Q: WHAT IS THE VALUE OF DISCOUNTED FLOWS

A: As per Time value of money, there are present values as well as future values.

Q: How do you calculate simple interest and commission?

A: Interest and commission is a special type of income generated on the principal amount or net…

Q: Define discounting.

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: What is meant by the term discounting?

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: What are the benefits of interest tables?

A: The question is based on the concept of interest table.

Q: Which of the following is true about rates?

A: Total Rate of Return: The total rate is the real rate of return made on an investment over a period…

Q: Define the term premium?

A: Premium in finance has several definitions, with the initiative being the overall cost of purchasing…

Q: Write the methods of Calculating Interest?

A: Methods of calculating interest: The basic and fundamental methods for calculating interests are…

Q: why was the discount rate included in the table?

A: Discount rate is the expected rate of return for the project value which is used to convert the…

Q: What is the concept of present value? What is discounting?

A: Present value means value of future cash flows in todays terms.

Q: Describe in detail the Stochastic Discount Factor (SDF)and its components.

A: Stochastic discount factor is defined as the concept, which has the combination of the financial…

Q: What is discounting? / why do people discours?

A: As per Bartleby guidelines, If multiple questions are posted , only first 1 question will be…

Q: What is Inflation Premium?

A: Inflation premium: An inflation premium is the piece of the common interest rate coming about…

Q: What is discounting and compounding? What is the difference between them?

A: We need to use the equation of time value of money to explain the concept of discounting and…

Q: ermine the amount of each payment?

A: Loan: The loan is a value that is borrowed from external sources like banks and this amount is…

Q: Vhich of the following is the most widely discussed and used method of defining the discount ate?

A: In finance discount rate is the rate that is used to discount the future cash flows to its present…

Q: ernal rate of return and the discount rate turn pany's discount rate or internal rate of return unt…

A: To find the correct option as,

Q: What is the single-payment present-worth factor?

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: What are the features of the discounted payback period

A: DPP is the total time taken for the initial amount to equal to be the amount of discounted value of…

Q: Where does the discount rate from present value came from? How to solve it?

A: In finance, a reduction rate is that the rate of come wont to discount future money flows back to…

Q: With practical examples, differentiate between compounding and discounting

A: COMPOUNDING CONVERTS THE PRESENT VALUE INTO FUTURE VALUE DISCOUNTING CONVERTS FUTURE VALUR TO…

Q: Define the term Risk-Adjusted Discount Rate Approach?

A: The estimation of the present value of cash for high-risk investment is known as a risk-adjusted…

Q: What is the discount factor?

A: Discount factor, also known as the conversion factor refers to the value which is used to calculate…

Q: What is disbursal rate

A: Disbursal rate is an important concept in the realm of financial markets and in the realm of fintech…

Q: The discount rate can also be referred to as the?

A:

Q: What would be the value the payment?

A: In this question, we will use the excel function for calculating the maturity value of loan from the…

Q: Did you use the same discount rate in the FCF vs DDM model? If so, why? If not, why not?

A: DDM model is dividend discount model which focus on the dividend provided to the shareholder,…

Q: Define discount interest

A: Introduction: Usually, interest is the sum charged over an amount of time by the borrower for the…

Q: Illustrate the methods of calculating Interest?

A: Traditionally, there are two methods of calculating interest : 1. Simple interest rate method 2.…

Q: What do you mean by balloon payment?

A: Balloon payment:  A balloon payment is a big imbursement made at or nearby termination of a loan…

Q: What is surcharge?

A: surcharge is an additional or extra charge or tax charged on the cost of goods or service more than…

Q: Give one example for refunds?

A: The meaning of a refund is an amount of money given back to an individual or organization. In a…

Q: What are the four credit policy variables?

A: Credit policy is formed to manage the account receivables. It directly effects the working capital…

Q: What is the discounted payback period?

A: Discounted payback period is period for which present value of cash flow is equivalent to initial…

Q: Explain Discounted Present Value Techniques?

A: Capital budgeting is the process of allocating the resources of the company in long term investment…

Q: What’s the difference between simple interest and add-on interest?

A: Interest is the amount of extra payments a borrower has to make to its lender as a return for…

Q: Define Discount.

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: What is premium on forward rate?

A: A forward rate is referred as an interest rate which is applicable on financial transactions which…