Equivalence of interest rates some financial transactions

Abstract

Importance: study of the dependencies of interest rates and the relationships between them on the financial flows through which financial transactions are carried out and their final results are achieved. Purpose: derivation of formulas linking equivalent rates for financial transactions of capital accumulation and loan repayment depending on payment flows. Research design: or the mentioned operations, the following flows are considered sequentially: single payments, discrete uniform flows, discrete flows of payments according to arithmetic progressions, continuous equal-dimensional flows, continuous linear flows. The prospects of using exponential flows are indicated. Results: in addition to the derived formulas or the indication of methods for determining the relationships between the rates, some qualitative characteristics have been obtained. The author suggests discussing the exclusion from financial practice of all types of complex rates with discrete capitalizations.