Answered

Discover the best answers to your questions with the help of IDNLearn.com. Join our Q&A platform to receive prompt and accurate responses from knowledgeable professionals in various fields.

Andrew just calculated the present value of a $15,000 bonus he will receive next year. The interest rate he used in his calculation is referred to as the:

Sagot :

Abiolataiwo2015idn

The interest rate he used in his calculation is referred to as the: Discount rate.

What is discount rate?

Discount rate can be defined as the interest rate that is used to calculate the present value (PV) of the amount that will be receive in the future.

Example if a person invested 200 today in a bank that offers discount rate of 20% which means that the amount invested today will increase to $220.

Based on the information given the interest rate he used in his calculation is discount rate.

Inconclusion the interest rate he used in his calculation is referred to as the: Discount rate.

Learn more about discount rate here:https://brainly.com/question/7459025

We are delighted to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. Thank you for choosing IDNLearn.com for your queries. We’re here to provide accurate answers, so visit us again soon.