Asked by Dekia Mitchell on Jul 15, 2024
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The amount of money a borrower receives from the lender is called the discount rate.
Discount Rate
The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.
Borrower
An individual or entity that receives funds from a lender under the condition of returning it over time, with interest.
Lender
An individual, a financial institution or another entity that provides funds to others with the expectation that the funds will be repaid, typically with interest.
- Acquire knowledge on the determination and impact of interest and discount rates applied to notes payable.
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Learning Objectives
- Acquire knowledge on the determination and impact of interest and discount rates applied to notes payable.
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