Chapter 12 – Introduction

This chapter is remixed from “Accounting Principles: A Business Perspective”, BC Campus and is licensed under CC BY 4.0

Rent, Interest, and Profit

In this lesson, you will learn how to:

  • define interest and explain how interest rates vary based on risk, maturity, loan size, and taxability
  • explain how interest rates relate to the time value of money.
  • explain how a firm uses “future value” and “present value” to evaluate buying and selling decisions over different time periods
  • Calculate present and future values through compounding and discounting

License

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Agribusiness Management 101 by William Rossman is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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