zikao- financial management [] - Chapter time value and risk-benefit

Time Value: Value is the difference of the amount of capital at different time points, from the time value of social capital into the value added in the production process. The time value relative number and the absolute number two representations, which is equal to the number of relatively no risk, no-average return on capital society under inflation conditions.

 

Second, calculate the time value of

The time value of the interest rate generally used to represent, calculate the interest of simple interest and compound interest generally include two kinds.

(A, simple interest calculated interest)

I =P *  N * R

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