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Andrew just calculated the present value of a $15,000 bonus he will receive next year. The interest rate he used in his calculation is referred to as the:

Sagot :

abiolataiwo2015

The interest rate he used in his calculation is referred to as the: Discount rate.

What is discount rate?

Discount rate can be defined as the interest rate that is used to calculate the present value (PV) of the amount that will be receive in the future.

Example if a person invested 200 today in a bank that offers discount rate of 20% which means that the amount invested today will increase to $220.

Based on the information given the interest rate he used in his calculation is discount rate.

Inconclusion the interest rate he used in his calculation is referred to as the: Discount rate.

Learn more about discount rate here:https://brainly.com/question/7459025

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