What 4 concepts are covered in the d-i-v interest rate relationships Calculator?
d-i-v interest rate relationships
discount rate
the interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows. Key Takeaways.
interest rate
the proportion of a loan that is charged as interest to the borrower or proportion of principal credit given to a depositor
present value
the value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest. PV = FV/(1 + i)n where I is the interest rate per period, PV = Present Value, and FV = Future Value
Example calculations for the d-i-v interest rate relationships Calculator