Interest, discounts and rates that appear in contracts, investments and instalment purchases.
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5
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matematica-financeira
Category
Financial Math
Commercial discount is calculated on the face value of the instrument, not on the present value. This detail completely changes the real cost of early collection.
In compound interest, each period's interest is added to the capital and generates even larger interest the next period. This exponential effect is the most powerful principle in finance.
Comparing financial products requires understanding whether a rate is nominal or effective and whether it accounts for inflation. Converting correctly between periods avoids costly mistakes.
Understanding the difference between revenue, cost and profit is the first step in running any business. Markup and margin are related concepts that are frequently confused.
When the rate is always applied to the original capital, growth happens in a straight line. Understand why this matters for your finances.