Determine the equivalent discount rate for a period length of vglabbr

Determine the equivalent discount rate for a period length of

11.10.2020

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Math Business Finance Discount Rate. Barbara R. asked • 08/31/13 Find the equivalent rate of interest for a discount rate of 7.5% for 60 days. would i use the formula r= d/1-dn? which would be .075/1-.075(60/360) = .0625 or 6.25%. if the 7.5% is the annual interest rate, then the formula would be the following to find the equivalent rate Determine the equivalent discount rate for the following periods: a. Six months b. One year c. One month a. Six months The equivalent discount rate for a period length of six months is %. (Round to two decimal places.) b. One year The equivalent discount rate for a period length of one year is %. (Round to two decimal places.) c. determine the equivalent discount rate for the following periods of time A. 6 months B. 1 year C. 1 month The answers were A. 5.1 B. 10.45 C. 0.832 I don't show more I had a homework question that read : your bank is offering an account that will pay 22% intertest in total for a for a 2 year deposit. The discount rate is the interest rate used when calculating the net present value (NPV) of something. NPV is a core component of corporate budgeting and is a comprehensive way to calculate Determine a project’s initial required investment, annual cash flows and discount rate, which is the rate you could earn on a similar investment. For the following example use -$1,000 as the initial investment, which is negative because it’s a cash outflow, and $600 and $800 as the first and second year’s cash flows, respectively. Discount Rate: The discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve's discount window. To calculate a discount rate, you first need to know the going interest rate that your business could get from investing capital in an investment with similar risk. You can then calculate the discount rate using the formula 1/(1+i)^n, where i equals the interest rate and n represents how many years until you receive the cash flow.

Calculating Discount Rates. The discount rate or discount factor is a percentage that represents the time value of money for a certain cash flow. To calculate a discount rate for a cash flow, you'll need to know the highest interest rate you could get on a similar investment elsewhere.

Determine the equivalent discount rate for a period length of a. Six months. b. One year. c. One month. a. Since 6 months is [pic] of 2 years, using our rule [pic] So the equivalent 6 month rate is 4.66%. b. Since one year is half of 2 years [pic] So the equivalent 1 year rate is 9.54%. c. Calculator Use. Convert a nominal interest rate from one compounding frequency to another while keeping the effective interest rate constant.. Given the periodic nominal rate r compounded m times per per period, the equivalent periodic nominal rate i compounded q times per period is To calculate a discount rate, you first need to know the going interest rate that your business could get from investing capital in an investment with similar risk. You can then calculate the discount rate using the formula 1/(1+i)^n, where i equals the interest rate and n represents how many years until you receive the cash flow.

OMB uses a ten percent annual "discount rate" to convert future regulatory That increment can be extrapolated to determine the value workers implicitly The arithmetic becomes more complicated when more than one period is involved. or benefits,[44] depending on the size of the discount rate and the length of time

Determine the equivalent discount rate for a period length of: a. Six months. b. One year. c. One month. a. Since 6 months is 6 1 24 4 = of 2 years, using our rule (29 1 4 1 0.2 1.0466 + =. So the equivalent 6 month rate is 4.66%. b. Since one year is half of 2 years (29 1 2 1.2 1.0954 = So the equivalent 1 year rate is 9.54%. c. Math Business Finance Discount Rate. Barbara R. asked • 08/31/13 Find the equivalent rate of interest for a discount rate of 7.5% for 60 days. would i use the formula r= d/1-dn? which would be .075/1-.075(60/360) = .0625 or 6.25%. if the 7.5% is the annual interest rate, then the formula would be the following to find the equivalent rate Determine the equivalent discount rate for the following periods: a. Six months b. One year c. One month a. Six months The equivalent discount rate for a period length of six months is %. (Round to two decimal places.) b. One year The equivalent discount rate for a period length of one year is %. (Round to two decimal places.) c. determine the equivalent discount rate for the following periods of time A. 6 months B. 1 year C. 1 month The answers were A. 5.1 B. 10.45 C. 0.832 I don't show more I had a homework question that read : your bank is offering an account that will pay 22% intertest in total for a for a 2 year deposit. The discount rate is the interest rate used when calculating the net present value (NPV) of something. NPV is a core component of corporate budgeting and is a comprehensive way to calculate Determine a project’s initial required investment, annual cash flows and discount rate, which is the rate you could earn on a similar investment. For the following example use -$1,000 as the initial investment, which is negative because it’s a cash outflow, and $600 and $800 as the first and second year’s cash flows, respectively. Discount Rate: The discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve's discount window.

other than the annual crediting of interest, determine the account balance after interest is The length of time is usually less than one year, and the an amount of $1 due in one time period (or present value factor or discount factor). the equivalent nominal annual rate of discount for m = 1,12,365, and ∞. Solution First

Determine the equivalent discount rate for a period length of a. Six months. b. One year. c. One month. a. Since 6 months is [pic] of 2 years, using our rule [pic] So

Determine The Equivalent Discount Rate For The Following: A. Six Months B. One Year C. One Month ((Note) Be Careful Not To Round Any Intermediate Steps