skip to main content
research-article

Borrowing in the limit as our nerdiness goes to infinity

Published:01 June 2011Publication History
Skip Abstract Section

Abstract

Suppose I owe you n payments of S/n dollars---total owed is S if there were no time-discounting---spread evenly over an amount of time t, at interest rate r per unit time. For example, I might owe you $120 in three payments over the coming year: $40 three months from now, another $40 in six months, and another $40 in nine months. If I wanted to instead just pay you once, a full $120, when should I do so to be perfectly equivalent to the three spread-out payments, given the interest rate?

Index Terms

  1. Borrowing in the limit as our nerdiness goes to infinity

        Recommendations

        Comments

        Login options

        Check if you have access through your login credentials or your institution to get full access on this article.

        Sign in

        Full Access

        • Published in

          cover image ACM SIGecom Exchanges
          ACM SIGecom Exchanges  Volume 10, Issue 2
          June 2011
          50 pages
          EISSN:1551-9031
          DOI:10.1145/1998549
          Issue’s Table of Contents

          Copyright © 2011 Author

          Publisher

          Association for Computing Machinery

          New York, NY, United States

          Publication History

          • Published: 1 June 2011

          Check for updates

          Qualifiers

          • research-article

        PDF Format

        View or Download as a PDF file.

        PDF

        eReader

        View online with eReader.

        eReader