Dower Publishing discounted a $30,000 note receivable at a 2% discount rate for 2 months. It recorded interest revenue of $150 for the interest accrued to date. It received $30,044 cash for the discounted note, realizing a $106 loss from discounting the note below its face value plus accrued interest.
The document discusses simple and compound interest. It defines both types of interest and provides formulas to calculate future value under each. An example is shown where a learner named Steve invests R300 at 10% interest annually under simple and compound interest over 3 years. Compound interest provides a higher return due to interest earning interest each period. The document encourages choosing investments that use compound versus simple interest.
This document provides instructions on how to define cash discounts in SAP Business One. Key points include:
1) Cash discounts can be defined by date or by days after the invoice posting date to encourage early payment. Accounts must be set up for cash discount revenue and expense.
2) Payment terms are linked to cash discount templates which define the discount rates and rules. Templates can be updated or deleted if not already used.
3) When payments are made, the system calculates discounts based on the invoice terms and payment date. Discounts can be manually adjusted.
4) Additional settings determine how discounts apply for payment runs, internal reconciliations, and accounts payable invoices. Localization features also
This document discusses accounting for promissory notes. It defines a promissory note as a written promise to pay a fixed amount of money at a future date, which may include interest. It provides a sample promissory note and identifies the key components of a note, including the maker, payee, principal amount, interest rate, maturity date, and place of issue. It describes how promissory notes can arise from transactions like services on credit, outstanding accounts, or loans. Finally, it distinguishes between non-interest bearing notes and interest-bearing notes.
Annuities explained is a presentation which will explain everything you need to know about the major types of annuities, what are the best annuities and how to select the most appropriate annuity in your particular situation.
This document provides an overview of mathematical finance, including:
- A brief history from Bachelier's dissertation in 1900 to the establishment of mathematical finance as a discipline in the 1990s.
- The various areas of mathematics used in mathematical finance, such as stochastic calculus, PDEs, Monte Carlo simulation, and more.
- Applications of financial mathematics like hedging and risk management, algorithmic trading, asset liability modelling, and portfolio optimization.
- Current research areas and issues in mathematical finance.
The document contains sections on the history, mathematics, applications, research areas, current issues, and conclusion of the field of mathematical finance.
Dower Publishing discounted a $30,000 note receivable at a 2% discount rate for 2 months. It recorded interest revenue of $150 for the interest accrued to date. It received $30,044 cash for the discounted note, realizing a $106 loss from discounting the note below its face value plus accrued interest.
The document discusses simple and compound interest. It defines both types of interest and provides formulas to calculate future value under each. An example is shown where a learner named Steve invests R300 at 10% interest annually under simple and compound interest over 3 years. Compound interest provides a higher return due to interest earning interest each period. The document encourages choosing investments that use compound versus simple interest.
This document provides instructions on how to define cash discounts in SAP Business One. Key points include:
1) Cash discounts can be defined by date or by days after the invoice posting date to encourage early payment. Accounts must be set up for cash discount revenue and expense.
2) Payment terms are linked to cash discount templates which define the discount rates and rules. Templates can be updated or deleted if not already used.
3) When payments are made, the system calculates discounts based on the invoice terms and payment date. Discounts can be manually adjusted.
4) Additional settings determine how discounts apply for payment runs, internal reconciliations, and accounts payable invoices. Localization features also
This document discusses accounting for promissory notes. It defines a promissory note as a written promise to pay a fixed amount of money at a future date, which may include interest. It provides a sample promissory note and identifies the key components of a note, including the maker, payee, principal amount, interest rate, maturity date, and place of issue. It describes how promissory notes can arise from transactions like services on credit, outstanding accounts, or loans. Finally, it distinguishes between non-interest bearing notes and interest-bearing notes.
Annuities explained is a presentation which will explain everything you need to know about the major types of annuities, what are the best annuities and how to select the most appropriate annuity in your particular situation.
This document provides an overview of mathematical finance, including:
- A brief history from Bachelier's dissertation in 1900 to the establishment of mathematical finance as a discipline in the 1990s.
- The various areas of mathematics used in mathematical finance, such as stochastic calculus, PDEs, Monte Carlo simulation, and more.
- Applications of financial mathematics like hedging and risk management, algorithmic trading, asset liability modelling, and portfolio optimization.
- Current research areas and issues in mathematical finance.
The document contains sections on the history, mathematics, applications, research areas, current issues, and conclusion of the field of mathematical finance.