In some cases, cash flows are received in advance, and in other cases, cash flows are received at the end of a period. In still other cases, cash flows are received either quarterly, semi-annually, or yearly. How often interest compounds also has an effect on the cost of money.Explain how the way they collect and pay interest has an effect on interest compounding and on the cost of capital.
Topic: Compounding Interest and the Banker There are many factors influencing the cost of money for both individuals and corporations. In some cases, cash flows are received in advance, and in other cases, cash flows are received at the end of a period. In still other cases, cash flows are received either quarterly, semi-annually, or […]