Discount rate

Now what can we do ?

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

Or the other way to view it is, assets minus liabilities is equal to equity, right?

60 off.

These are 30 percent off.

when the sale has a certain percentage ?

We could have also done it other way.

And it just depended on how the mathematics work out.

Free coupons. Discount Discount coupons.

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

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.

Well, its assets are let's see one plus 21, 25, 26 billion in assets and its liabilities are 23 billion.

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

We could have said Let y equal the discount

5 minus this 2.

Thirty percent off for USC alumni.

Because essentially, or you can view it this way, if you subtract liabilities from both sides, assets minus

That just comes out of the definition of what equity is.

And I'll go into more detail into how you value these types of things.

And so liabilities plus equity is equal to assets.

Do you have a student fare?

Well, that was x.

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

So this is essentially you have the government, you have the government, it has two sources of revenue that it can spend it has money from taxes, it has tax revenue, and then it can go out and borrow money, and so it also has access to debt markets.

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.

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.

Are there any discount tickets for me?

But what if I wanted to generalize a little bit ?

Be silent. Keep your forked tongue behind your teeth.

Special rates for state and federal employees.

20 plus 80 plus 5, so it's 105,000. 105,000 total liabilities.

But this I just want to show you some data here.

This is the difference between the two.

I have some coupons I got last week.

So 2009 money, that's worth 1.

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

I'll say p, just so it makes sense, p is equal to the percentage off.

What is it about Superman?

Perhaps only at a discount.

So first, a little bit of definitions.

So what is left over for me?

We said, and we learned it in the first video, and we