第六章 货币的时间价值（The sixth chapter is the time value of money）.docVIP

第六章 货币的时间价值（The sixth chapter is the time value of money） The sixth chapter is the time value of money The time value of money is used to express the relationship between time and money for todays one dollar and one dollar tomorrow is not the same, because the investment in this one yuan today, and get the interest from this investment opportunity. This is what is called present value based accounting. The application of accounting measures based on present value is widely relevant, for example: Bill Lease Amortization of premium Retirement benefits and other pension benefits Long-term assets Sinking fund Business combination Expose (9) installment contract... etc. Nature of interest Interest is the price paid by the currency, i.e., the amount of cash received or repaid, more than the amount originally lent or borrowed. The calculation of interest depends on the following three variables: Interest = principal * interest rate X period Elements of interest rates: How to choose the right interest rate? The following three factors are usually considered. (1) the pure interest rate (Pure (2%~4%): Rate) The price demanded by a lender when there is no default risk and no inflation is expected. (2) credit risk rate (Credit Risk Rate): (0%~5%) Government bonds do not have any credit risk, but private enterprises have different levels of credit risk in terms of their financial stability, profitability and other factors. (3) the expected inflation rate (Expected Inflation Rate): (0%~?) The lender believes that under inflation, the value of future currencies will be lower, so interest rates must be raised to compensate for the loss of purchasing power. Interest (Simple) Means the interest is calculated only on the basis of the principal amount, the interest is not rolled into the principal, the interest is renewed (e.g., interest is rolled into the principal, the interest is renewed, compound interest is compounded). Simple interest method usually only for a year or less invest