You might want to watch the videos on present value.

There's financing, there's installment plans.

Let's split the bill.

He payed in installments.

And then some of its payment is today.

We give a 10 discount for cash.

Both elements in the parse tree that are involved in the transaction.

I thought we had discussed a cash discount.

And the payments?

But we want to split the pay that's due them, instead.

Oftentimes you want to discount a payment two years out by a higher value than something that's only one year out.

McMansion for me.

Will you give any discount if I pay in cash?

Because some of them have paid, and some of them are still paying.

Payment

Pay up

And then year 10, I pay the 100,000 plus I pay back the 1 million.

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

What's this, dear?

That will now compound over the next month.

Processing Payment

Number of periods

You're going to pay it over 30 years, or you could say that's 360 months.

And when will you settle your account?

So what they do is out of this 10 , they pay them some of the basis points.

So actually, let me do that.

And you say, this group of the CDOs, they'll get the first payments. or if any payments that go, immediately go to this very senior tranche, right?

They have no money down, 1 million loan, subprime, negative amortization, they had no credit rating, etc, etc.

I'll pay with travelers' checks.

Who received this money?

Look, I don't run a layaway program.

We'll reimburse you ... in installments

Choice 3, I am going to pay you I'm making this up on the fly as I go I'm going to pay you 20 today.

And you could guess what the next line is going to be, given that this says pre tax.

But the important thing to realize is that these payments

We were only getting paid for DeMarco.

No se puede salir sin pagar!

He owned Mark after that dinner.

Please use an alternative method of payment.

Let's say it borrows 100 and it promises to pay it in a year.

In this situation, you take your payment, you discount it by your monthly interest rate, you get the loan amount.

We're waiting for our wages

Offering our easy pay plan on this item.

A 10 tax will be withheld from the payment to you.

Discount rate