Rate of Return Would Not Increase to the Extent of Annuity Saving Discount

Authors

  • Yin-Ching Jan Department of Distribution Management, National Chin-Yi University of Technology, Taiwan
  • Yu-Chun Lin Department of Distribution Management, National Chin-Yi University of Technology, Taiwan

DOI:

https://doi.org/10.18488/journal.29/2014.1.4/29.4.66.69

Abstract

This note demonstrates that when there is a discount on uniform cash flow, the rate of return would not increase to the extent of the discount. The extent to which the rate of return would increase depends on the investment horizon.

Keywords:

Rate of return, Annuity, Discount, Investment horizon

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Published

2014-04-15

How to Cite

Jan, Y.-C. ., & Lin, Y.-C. . (2014). Rate of Return Would Not Increase to the Extent of Annuity Saving Discount. The Economics and Finance Letters, 1(4), 66–69. https://doi.org/10.18488/journal.29/2014.1.4/29.4.66.69

Issue

Vol. 1 No. 4 (2014)

Section

Articles