Special rates for state and federal employees.

Let x be the price of the product I want to buy, the nondiscount price of the product in the store.

The probability of reaching S prime given that we started state S and apply action A.

It's p.

Discount rate

Now what can we do ?

You'd better take his words with a grain of salt.

60 off.

We could have also done it other way.

These are 30 percent off.

And it just depended on how the mathematics work out.

Another way to kind of just talk about this is to get the present value of 110 a year from now, we discount the value by a discount rate.

We could have said Let y equal the discount

5 minus this 2.

In this example that I did in the previous video, it was the pre tax return on asset.

when the sale has a certain percentage ?

Now we can say that the discount is equal to the percentage off.

Previous Split View

So you could view this as being equivalent to So we're going to do our multiplication before we do any addition or subtraction, and we're going to do our division before doing any addition or subtraction.

But the big learning from this is how dependent the present value of future payments are on your discount rate assumption.

And this one that was in Kenya, they went around and distributed to people vouchers, discount vouchers.

Free coupons. Discount Discount coupons.

Well, I don't give group rates, you know.

How the main window is divided.

Are there special evening rates?

If I could get it for 90, that's a good deal for me.

So x minus twenty five percent x is equal to the sale price.

But what if I wanted to generalize a little bit ?

Then to discount money in the future to the present, we divide it by 1 plus the discount rate so this is a 5 discount rate.

Let's say in every year it's going to make 1.

Thirty percent off for USC alumni.

You got a seat on the exchange?

Be silent. Keep your forked tongue behind your teeth.

Well, 54 divided by 6 is 9.

Do you have a student fare?

Well, that was x.

I have some coupons I got last week.

So 2009 money, that's worth 1.

What is it about Superman?

I bought the car at a 10 discount.

Add that together with the gas, and it's 112,000 per year, just for that sign in each direction.

This is the difference between the two.

That's the percentage off times the product in question, times the price, the non discount price of the product in question.

Draw edges along the grid lines which divide the rectangle under certain rules

To compound the amount of money we invest we multiply the amount we invest times 1 plus the yield.