• Study Resource
  • Explore
    • Arts & Humanities
    • Business
    • Engineering & Technology
    • Foreign Language
    • History
    • Math
    • Science
    • Social Science

    Top subcategories

    • Advanced Math
    • Algebra
    • Basic Math
    • Calculus
    • Geometry
    • Linear Algebra
    • Pre-Algebra
    • Pre-Calculus
    • Statistics And Probability
    • Trigonometry
    • other →

    Top subcategories

    • Astronomy
    • Astrophysics
    • Biology
    • Chemistry
    • Earth Science
    • Environmental Science
    • Health Science
    • Physics
    • other →

    Top subcategories

    • Anthropology
    • Law
    • Political Science
    • Psychology
    • Sociology
    • other →

    Top subcategories

    • Accounting
    • Economics
    • Finance
    • Management
    • other →

    Top subcategories

    • Aerospace Engineering
    • Bioengineering
    • Chemical Engineering
    • Civil Engineering
    • Computer Science
    • Electrical Engineering
    • Industrial Engineering
    • Mechanical Engineering
    • Web Design
    • other →

    Top subcategories

    • Architecture
    • Communications
    • English
    • Gender Studies
    • Music
    • Performing Arts
    • Philosophy
    • Religious Studies
    • Writing
    • other →

    Top subcategories

    • Ancient History
    • European History
    • US History
    • World History
    • other →

    Top subcategories

    • Croatian
    • Czech
    • Finnish
    • Greek
    • Hindi
    • Japanese
    • Korean
    • Persian
    • Swedish
    • Turkish
    • other →
 
Profile Documents Logout
Upload
Traditional Interest Rate Channels
Traditional Interest Rate Channels

Compound Interest
Compound Interest

The value of Mr. Gouline’s car is cut in half every three
The value of Mr. Gouline’s car is cut in half every three

M1 = currency + traveler`s checks + demand deposits + other
M1 = currency + traveler`s checks + demand deposits + other

... happens to the value of your bond? People will be willing to pay more than $1000 for your bond because it pays higher interest than newly issued bonds with the same face value. Your bond rises in value to $1600. The person who buys your bond for $1600 receives $80 a year in interest plus $1000 when ...
Emerging Market Economies: economies in an earlier stage of
Emerging Market Economies: economies in an earlier stage of

... Emerging Market Economies: economies in an earlier stage of market development that have recently opened up to the flow of goods, services, and capital from the rest of the world.  High growth rate, less restrictions  Mexican crisis in 1994 East Asian crisis in 1997-98 Argentine Crisis in 2001-02 ...
Finance 301 Chapter 6: Problems 10/16/08 30 day T
Finance 301 Chapter 6: Problems 10/16/08 30 day T

... Usually, if the bonds is called early, the issuer has to pay a call premium that awards the bond holder with more money than par. (example a 10% premium on a 100 dollar bond would give the holder 110 dollars if it were called early.) There is also something called “call protection” that prohibits th ...
Chapter 1 Simple and compound interest
Chapter 1 Simple and compound interest

... D 6.25% p.a. compound interest with monthly rests E 6% compound interest with daily ...
7-95.
7-95.

... 7-91. The Jones family wants to remodel their kitchen. They have saved $23,000 in the last two years. Their contractor says the remodel will cost $40,000. They can borrow the difference at a monthly interest rate of 2% simple interest. If they pay the loan off in six months, how much will they have ...
Review Guide 2
Review Guide 2



...  If central bank (CB) targets interest rate, no limit to lending; If CB enforces fractional reserve, firms use commercial paper (higher interest)  Where do i (interest) and p (profit) come from?  More loans or more vertical money required. ECONOMIC GROWTH ...
Term Structure
Term Structure

... “The bond will pay interest at a rate of 16% of par, semiannually on each October 15 and April 15 from April 15, 2009 through April 15, 2024. The annual interest rate is 16%. On April 15, 2024 the bond will make its final interest payment and also pay the holder the par value of $1,000. ...
4.5 Applications of Exponential Functions
4.5 Applications of Exponential Functions

Lecture / Chapter 3
Lecture / Chapter 3

5.2 A Notes - www .alexandria .k12 .mn .us
5.2 A Notes - www .alexandria .k12 .mn .us

... According to Newton's Law of Cooling, the rate at which an object cools is directly  proportional to the difference in temperature between the object and the surrounding  medium. The face of a household iron cools from 125o to 100o in 30 minutes in a  room that remains at a constant temperature of 7 ...
Money, Banking, and Financial Markets (Econ 353) Midterm
Money, Banking, and Financial Markets (Econ 353) Midterm

TopicsInAnalysis
TopicsInAnalysis

Chapter 5a Recommended End-of-Chapter Problems and Solutions
Chapter 5a Recommended End-of-Chapter Problems and Solutions

... Chapter 5a Recommended End-of-Chapter Problems and Solutions 1. Brennan Alston deposits $2000 in a savings account offering 6.25% compounded daily. After 4 years, assuming he makes no further deposits, what will be the balance in his account? The question requests the future value (FV) of a single p ...
Assignment #1 File
Assignment #1 File

... Question 2 .Human life value approach is one method for estimating the amount of life insurance to own. Keeping all other factors unchanged; explain the effect, if any, of each of the following: a.The discount rate used to calculate the human life value approach is increased. b.The amount of average ...
Slide 1
Slide 1

Chapter 11 Money and the Economy
Chapter 11 Money and the Economy

... REAL RATE - the rate of return banks must have to cover costs and provide a return to investors  NOMINAL RATE - real rate plus the expected rate of inflation ...
download soal
download soal

Money, Banking, and Financial Markets (Econ 353): Section 1
Money, Banking, and Financial Markets (Econ 353): Section 1

... A) The interest rate is 9 percent and the expected inflation rate is 7 percent. B) The interest rate is 4 percent and the expected inflation rate is 1 percent. C) The interest rate is 13 percent and the expected inflation rate is 15 percent. D) The interest rate is 25 percent and the expected inflat ...
University of Provence - University of North Florida
University of Provence - University of North Florida

... accumulated investment cash flows (nondiscounted) equal the original investment, i.e., how long to get your money back • Payback Period Rule – accept an investment if it pays back original investment within acceptable length of time • Shortcomings – timing of cash flows is ignored; cash flows after ...
Slides
Slides

Investment Policy 2013
Investment Policy 2013

... 1. The Academy must regularly monitor cash flow and current account balances to ensure immediate financial commitments can be met and that the current account has adequate balances to meet forthcoming commitments 2. The Academy does not have an overdraft facility on any bank accounts and accounts sh ...
< 1 ... 171 172 173 174 175 176 177 >

Present value

In economics, present value, also known as present discounted value, is the value of an expected income stream determined as of the date of valuation. The present value is always less than or equal to the future value because money has interest-earning potential, a characteristic referred to as the time value of money, except during times of negative interest rates, when the present value will be greater than the future value. Time value can be described with the simplified phrase, “A dollar today is worth more than a dollar tomorrow”. Here, 'worth more' means that its value is greater. A dollar today is worth more than a dollar tomorrow because the dollar can be invested and earn a day's worth of interest, making the total accumulate to a value more than a dollar by tomorrow. Interest can be compared to rent. Just as rent is paid to a landlord by a tenant, without the ownership of the asset being transferred, interest is paid to a lender by a borrower who gains access to the money for a time before paying it back. By letting the borrower have access to the money, the lender has sacrificed the exchange value of this money, and is compensated for it in the form of interest. The initial amount of the borrowed funds (the present value) is less than the total amount of money paid to the lender.Present value calculations, and similarly future value calculations, are used to value loans, mortgages, annuities, sinking funds, perpetuities, bonds, and more. These calculations are used to make comparisons between cash flows that don’t occur at simultaneous times. The idea is much like algebra, where variable units must be consistent in order to compare or carry out addition and subtraction; time dates must be consistent in order to make comparisons between values or carry out simple calculations. When deciding between projects in which to invest, the choice can be made by comparing respective present values of such projects by means of discounting the expected income streams at the corresponding project interest rate, or rate of return. The project with the highest present value, i.e. that is most valuable today, should be chosen.
  • studyres.com © 2025
  • DMCA
  • Privacy
  • Terms
  • Report