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Trade discounts are given to try to increase the volume of sales being made by the supplier. The discount described as trade rate discount is sometimes called "trade discount". Trade discount is the discount allowed on retail price of a product or something. for e.g. Retail price of a cream is 25 and trade discount is 2% on 25.
[1] [2] Therefore, considering the fact that the "discount" must match the benefits obtained from a similar investment asset, the "discount yield" must be used within the same compounding mechanism to negotiate an increase in the size of the "discount" whenever the time period of the payment is delayed or extended.
For the hyperbolic model using g(D), the discount for a week from now is () =, which is the same as for f in the exponential model, while the incremental discount for an additional week after a delay of D weeks is not the same: (+) = + From this one can see that the two models of discounting are the same "now"; this is the reason for the choice ...
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