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  2. Rule of 72 - Wikipedia

    en.wikipedia.org/wiki/Rule_of_72

    In finance, the rule of 72, the rule of 70 [1] and the rule of 69.3 are methods for estimating an investment's doubling time. The rule number (e.g., 72) is divided by the interest percentage per period (usually years) to obtain the approximate number of periods required for doubling.

  3. Present value - Wikipedia

    en.wikipedia.org/wiki/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, except during times of negative interest rates, when the present value ...

  4. Reserve requirement - Wikipedia

    en.wikipedia.org/wiki/Reserve_requirement

    10.00: Banks shall maintain minimum required reserves to the amount of 10% of the deposit base (effective from 1 December 2008) with two exceptions (effective from 1 January 2009): 1. on funds attracted by banks from abroad: 5%; 2. on funds attracted from state and local government budgets: 0%. [21] Burundi: 8.50: Canada: Zero, [8]: 347 [22]: 5 ...

  5. Flat rate (finance) - Wikipedia

    en.wikipedia.org/wiki/Flat_rate_(finance)

    Flat interest rate mortgages and loans calculate interest based on the amount of money a borrower receives at the beginning of a loan. However, if repayment is scheduled to occur at regular intervals throughout the term, the average amount to which the borrower has access is lower and so the effective or true rate of interest is higher.

  6. Hyperbolic discounting - Wikipedia

    en.wikipedia.org/wiki/Hyperbolic_discounting

    Hyperbolic discounting is mathematically described as = +where g(D) is the discount factor that multiplies the value of the reward, D is the delay in the reward, and k is a parameter governing the degree of discounting (for example, the interest rate).

  7. Real interest rate - Wikipedia

    en.wikipedia.org/wiki/Real_interest_rate

    For example, if somebody lends $1000 for a year at 10%, and receives $1100 back at the end of the year, this represents a 10% increase in her purchasing power if prices for the average goods and services that she buys are unchanged from what they were at the beginning of the year.

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