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Trade discounts are given to try to increase the volume of sales being made by the supplier. The discount described as trade rate discount is sometimes called "trade discount". 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.
The discount factor, DF(T), is the factor by which a future cash flow must be multiplied in order to obtain the present value. For a zero-rate (also called spot rate) r , taken from a yield curve , and a time to cash flow T (in years), the discount factor is:
The DAC is recoverable if the K-factor is less than 100%. If there is an unearned revenue liability (URL), it may even be recoverable if the K-factor is higher than 100%. If the K-factor is greater than 100% and there is no URL, a portion of the DAC or the total DAC has to be written off immediately, so that the new K-factor is equal 100%.
This present value factor, or discount factor, is used to determine the amount of money that must be invested now in order to have a given amount of money in the future. For example, if you need 1 in one year, then the amount of money you should invest now is: 1 × v {\displaystyle \,1\times v} .
Often, limited data is available to determine appropriate charges for high limits of insurance. In order to price policies with high limits of insurance adequately, actuaries may first determine a "basic limit" premium and then apply increased limits factors. The basic limit is a lower limit of liability under which there is a more credible ...
For example, a $100,000 business loan paid off in two years with a 25 percent interest rate would cost $28,091.65 in total interest. That amount is far less than the $50,000 in interest you’d ...
Telematics car insurance programs offer discounts up to 40% for letting insurers monitor your driving habits through a plug-in device or smartphone app, but the savings come with important privacy ...
The concept of the stochastic discount factor (SDF) is used in financial economics and mathematical finance. The name derives from the price of an asset being computable by "discounting" the future cash flow x ~ i {\displaystyle {\tilde {x}}_{i}} by the stochastic factor m ~ {\displaystyle {\tilde {m}}} , and then taking the expectation. [ 1 ]