Finance - QS Study
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Difference between ordinary annuity and annuity due

The difference between ordinary Annuity and Annuity Due are below: Ordinary Annuity: Definition: Ordinary annuity is the payment or receipt occurs at the end of each......

Difference between discounting and compounding

The difference between discounting and compounding are discussed below: Discounting: Definition: Discounting is the process finding the present value 01 future cash flow or series......

What are the determining factors of time value of money?

The time value of money relevant to making financial decisions because: Investment decision: Investment in current tear and cash inflows received in future from that......

What is rule of 72 and rule of 69?

Rule of 69 Use N = 69 when dealing with any continuous growth process, or when you have a periodic growth process and the rate......

Define time value of money

The time value of money theory states that a dollar that you have in the bank today is worth more than a reliable promise or......

What would be the likely effect on the required rate of return on equity?

Risk-averse investors will assign lower values to assets that have more risk associated with them than to otherwise similar assets that are less risky. The......

Difference between Systematic Risk and Unsystematic Risk

The difference between systematic risk and unsystematic risk are: Systematic Risk Definition: Systematic risk is that portion of the security risk which cannot be diversifiable from......

Difference between nominal rate and effective rate of interest

Difference between nominal rate of interest and effective rate of interest is given below: Nominal rate of interest: Nominal rate is an annual rate. The......

What is Trade Credit?

Trade Credit – An arrangement to buy goods or services on the account without making immediate cash payment. For many businesses, trade credit is an essential......

Cost of Commercial Papers

Commercial paper is a money-market security issued (sold) by large corporations to obtain funds to meet short-term debt obligations (for example, payroll), and is backed......

What is compensating balance?

Compensating Balance The financial accounting term restricted cash and compensating balances refers to monies that are reserved and not generally available to the company. Restricted......

Revolving Credit vs Line of Credit

Lines of credit and revolving credit are quite similar. These loan products are especially helpful for those building homes, remodeling, and paying off other debts.......