# rata de actualizare a investitiei

## English translation: discount rate of investment

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
 Romanian term or phrase: rata de actualizare a investitiei English translation: discount rate of investment Entered by:

 12:04 Jan 28, 2004
Romanian to English translations [PRO]
Bus/Financial - Accounting
 Romanian term or phrase: rata de actualizare a investitiei Rata de actualizare se compune din rata de baza (fara risc) plus prima de risc ce insumeaza riscurile aferente afeacerii. Rata de baza se considera rata dobanzii la certificatele de trezorerie in valuta din care se scade comisionul de retragere. Riscul asociat afacerii este de x%
 Oana DorobantuRomania Local time: 19:08
Selected response from:

Mihaela Sinca
Local time: 19:08
 4 KudoZ points were awarded for this answer

4 +1discount rate of investment
 Mihaela Sinca
5discount rate
 Hezy Mor

1 hr   confidence:
discount rate

Explanation:
Este vorba de calcularea valorii presente a investitiei (Net Present Value). Acest calcul arata legatura dintre sumele de investitie care se vor face la anumite puncte in viitor si valoarea lor in momentul de fata. Aceasta se calculeaza pe baza ceea ce se numeste "discount rate".

 Hezy MorLocal time: 19:08Specializes in fieldNative speaker of: HebrewPRO pts in category: 24

1 hr   confidence: peer agreement (net): +1
discount rate of investment

Explanation:
Discount rate

The term "discount rate" has two distinct meanings:

1) In calculations of a company's intrinsic value, the term "discount rate" refers to the gain you'd need to realize to make your investment in a given stock worth the associated risk ("opportunity costs"). The discount rate factors in:

The bond rate: Your investment could grow risk-free at the bond rate. You'll need to beat this rate to make your investment worthwhile. Matching the bond rate also means automatically that your money will grow at or above the rate of inflation; if you fail to keep up with inflation, the purchasing power of your investment will dwindle over time.
A "risk premium": You're probably looking to realize a certain percentage gain over and above the inflation and bond rates to make assuming the investment risk worth your while. The size of this risk premium is up to you. Add the bond rate and risk premium together to arrive at a discount rate suitable to your investment expectations.
2) The interest rate the Federal Reserve Board charges large institutional banks for overnight borrowing. The discount rate is always lower than the federal funds rate, which is used when banks make short-term loans to each other. The Fed can influence short-term interest rates nationwide by raising or lowering the discount rate. Raising interest rates helps keep inflation in check. Lowering them generally fuels the economy and heats up the stock market.

Reference: http://www.quicken.com/glossary/notemplates/content/?discrat...
 Mihaela SincaLocal time: 19:08Native speaker of: RomanianPRO pts in category: 27

agree
 1 hr

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