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What is the relationship between state and law?
Distinguish between a public law relationship and a private law relationship.
What is the relationship between the present value and time?
The relationship between present value (PV) and time is inverse; as time increases, the present value of a future cash flow decreases. This is due to the concept of time value of money, which states that a dollar today is worth more than a dollar in the future because of its potential earning capacity. Therefore, the longer the time until the cash flow is received, the greater the discounting effect, leading to a lower present value.
What is the relationship between ethics?
What is the relationship between ethics and WHAT? You need at least two things to have a relationship.
What was the relationship between the brothers?
a relationship between brothers should be sacred and good....
What is the relationship between CO2 and temp?
there is no relationship
Explain the difference between compounding and discounting and how they value the cash flows of the organization?
Compounding means that you are adding money to the capital. Discounting means that some of the cost is being taken away.
Discounting is compounding in reverse?
yes
Principles of compounding vs discounting?
Compounding has to do with adding things together to create a larger version of the original. Discounting is about cutting things such as cutting prices.
Why the proses of discounting and compounding are related?
Discounting and compounding are related because both processes involve the time value of money, reflecting how the value of money changes over time. Compounding calculates the future value of an investment by applying interest over time, while discounting determines the present value of future cash flows by removing the effects of interest. Essentially, discounting is the reverse of compounding; where compounding grows an amount, discounting reduces it to its present value, both using the same interest rate concept. Together, they provide a comprehensive understanding of how money behaves over time in financial contexts.
What is the inverse of compounding interest?
discounting..ie....1/(1+r)^n
What is discounting principles in managerial economic?
The discounting principle in managerial economic is the opposite of compounding. It is based on the present value of a sum of money you are getting in the future, the discount rate and the frequency.
What is the difference between compounding and discounting?
Compounding finds the future value of a present value using a compound interest rate. Discounting finds the present value of some future value, using a discount rate. They are inverse relationships. This is perhaps best illustrated by demonstrating that a present value of some future sum is the amount which, if compounded using the same interest rate and time period, results in a future value of the very same amount.
What is the relationship between the annual percentage rate (APR) and the effective annual rate (EAR) in the formula for calculating interest on a loan or investment?
The annual percentage rate (APR) is the stated interest rate on a loan or investment, while the effective annual rate (EAR) takes into account compounding to show the true cost of borrowing or the actual return on an investment. The relationship between APR and EAR is that the EAR will always be higher than the APR when compounding is involved, as the EAR reflects the impact of compounding on the total interest paid or earned.
What is the difference between factoring and discounting invoice?
The difference between factoring and invoice discounting is how public the third party makes themselves to a companies customers. With factoring customers are likely to notice the third party, and invoice discounting will leave most customers unaware of a third party.
What are the differences in returns between daily and monthly compounding for an investment with a fixed interest rate?
The main difference between daily and monthly compounding for an investment with a fixed interest rate is the frequency at which the interest is calculated and added to the investment. Daily compounding results in slightly higher returns compared to monthly compounding because interest is calculated more frequently, allowing for the compounding effect to occur more often.
If an investor had to choose between daily monthly or quarterly compounding which would you choose?
The greater the number of compounding periods, the larger the future value. The investor should choose daily compounding over monthly or quarterly.
What is the difference between actuarial interest and simple interest?
Actuarial interest takes into account compounding over time, while simple interest does not consider compounding.
