What are Discount Rates? (Financial Mathematics Lesson 8) ➡️ Download My Free Worksheet Set: https://www.jkmathematics.com/financial-mathematics-worksheet-set 🖥️ Join My Membership Site: https://www.jkmathematics.com/plus In this lesson we learn about discount rates and how they are rates of “interest payable in advance” rather than “interest payable in appears,” which is the type of interest rates we have looked at thus far. We discuss how this calculation is different and discover the many formulas that revolve around discount rates. This includes the concept that a discount rate acts as a present value factor. We look at brief examples using these equations, and then move onto discussing how discount rates can be simple rates or nominal rates as well. Then finally we compare the difference in the use of discount rates and typical interest rates in present value and future value scenarios. This course is designed to help students understand the concepts of mathematics of investment and credit, as well as provide a starting point in preparation for the Actuarial Exam FM (Financial Mathematics). Financial Mathematics requires a proficient understanding of Calculus concepts such as derivative and integration techniques. This implies that a solid understanding in various algebra skills, including manipulating equations, basic factoring methods, solving logarithmic equations, and more, are also required to fully comprehend and learn the concepts of the Financial Mathematics course. Video Chapters: 0:00 What is a Discount Rate? 4:31 Finding Discount Rate Formulas 8:37 Example - Using Discount Rate Formulas 10:38 Simple Discount Rates 11:19 Nominal Annual Discount Rates 11:47 Comparing Future Value and Present Value Equations 📝 Examples Video: https://youtu.be/eVZSuX40QP4 ⏩ Next Lesson: https://youtu.be/VchMrhOnG84 📺 Course Playlist: https://youtube.com/playlist?list=PLHdRLeAbIZE6jDdorvN8MOZCqvSci2c6F 🌐 Visit My Website: https://www.jkmathematics.com ⚡️Math Products I Recommend⚡️ Graphing Calculator: https://amzn.to/3XuUcB9 Non-Graphing Calculator: https://amzn.to/46hHJ7E Financial Calculator: https://amzn.to/3CRe9s4 Graphing Paper: https://amzn.to/46mAfAr College Rule Paper: https://amzn.to/3NOJaTN My Favorite Pencil: https://amzn.to/3NOFMIB My Favorite Erasers: https://amzn.to/3PumUQB Calculus Workbook: https://amzn.to/3r8SnNP ⚡️Textbooks I Use⚡️ Calculus 1 & 2: https://amzn.to/3PzfI5F Calculus 3: https://amzn.to/46rSy76 Financial Mathematics: https://amzn.to/3ppIVW0 ⚡️My Recording Equipment⚡️ iPad Air: https://amzn.to/3phEug1 Apple Pencil (Gen 2): https://amzn.to/3Nl45MM Tablet Desk Stand: https://amzn.to/4420rPh External Hardrive: https://amzn.to/44pkEyh (Commissions earned on qualifying purchases) Find me on social media: Facebook: https://www.facebook.com/jkmathematics Twitter: https://twitter.com/jk_mathematics Instagram: @jk_mathematics Found this video to be helpful? Consider giving this video a like and subscribing to the channel! Thanks for watching! Any questions? Feedback? Leave a comment! -Josh from JK Math #math #finance #examfm Disclaimer: Please note that some of the links associated with the videos on my channel may generate affiliate commissions on my behalf. As an amazon associate, I earn from qualifying purchases that you may make through such affiliate links.

• published: 04 Feb 2022
• views: 2691