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  2. Discounts and allowances - Wikipedia

    en.wikipedia.org/wiki/Discounts_and_allowances

    Trade discount is the discount allowed on retail price of a product or something. for e.g. Retail price of a cream is 25 and trade discount is 2% on 25. Trade rate discount . A trade rate discount, sometimes also called "trade discount", is offered by a seller to a buyer for purposes of trade or reselling, rather than to an end user.

  3. Discounting - Wikipedia

    en.wikipedia.org/wiki/Discounting

    Discounting. In finance, discounting is a mechanism in which a debtor obtains the right to delay payments to a creditor, for a defined period of time, in exchange for a charge or fee. [1] Essentially, the party that owes money in the present purchases the right to delay the payment until some future date. [2]

  4. Buyer's premium - Wikipedia

    en.wikipedia.org/wiki/Buyer's_premium

    The premium charged to buyers on the first $100,000 was held at 19.5 percent. Sotheby's had raised its premium for sales above $100,000 to 12% two weeks earlier, and increased its commission on the first $100,000 to 20% from 19.5%. In London, that meant 20% on the first £70,000 and 12% on any amount above that.

  5. Valuation using discounted cash flows - Wikipedia

    en.wikipedia.org/wiki/Valuation_using_discounted...

    Forward Discount Rate 60% 40% 30% 25% 20% Discount Factor 0.625 0.446 0.343 0.275 0.229 Discounted Cash Flow (22) (10) 3 28 42 This gives a total value of 41 for the first five years' cash flows. MedICT has chosen the perpetuity growth model to calculate the value of cash flows beyond the forecast period.

  6. Percentage - Wikipedia

    en.wikipedia.org/wiki/Percentage

    To calculate a percentage of a percentage, convert both percentages to fractions of 100, or to decimals, and multiply them. For example, 50% of 40% is: 50 / 100 × 40 / 100 = 0.50 × 0.40 = 0.20 = 20 / 100 = 20%. It is not correct to divide by 100 and use the percent sign at the same time; it would literally imply division by 10,000.

  7. Present value - Wikipedia

    en.wikipedia.org/wiki/Present_value

    Present value. In economics and finance, present value ( PV ), 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 usually less than the future value because money has interest -earning potential, a characteristic referred to as the time value of money ...

  8. Annual effective discount rate - Wikipedia

    en.wikipedia.org/wiki/Annual_effective_discount_rate

    A discount rate applied times over equal subintervals of a year is found from the annual effective rate d as. where is called the annual nominal rate of discount convertible thly. is the force of interest . The rate is always bigger than d because the rate of discount convertible thly is applied in each subinterval to a smaller (already ...

  9. Effective interest rate - Wikipedia

    en.wikipedia.org/wiki/Effective_interest_rate

    Since a loan by a borrower is an investment for the lender, both terms can apply to the same transaction, depending on the point of view. For a zero-coupon bond such as a US treasury bill, an annual effective discount rate may be specified instead of an effective interest rate, because zero coupon bonds trade at a discount from their face values.

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