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ANNUAL APPLICATION for the COST of LIVING CONCESSION APC F200 Form

ANNUAL APPLICATION for the COST of LIVING CONCESSION APC F200 Form

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so in this lesson we're going to introduce a specific term and calculation annual financing cost the annual financing cost of short-term borrowing with the bank so af i'm going to abbreviate that a f c annual financing cost and what that means is all the short-term borrowing regardless of what the term of maturity is will all be compared on on an annualized basis so that means if we borrow money for 12 months that's kind of the benchmark or standard we will use to measure all of our short-term borrowing of the bank so sometimes we may borrow money for three months six months nine months whatever it is we'll compare we'll calculate all of this on on an annualized basis to come up with the annual financing costs so we can compare everything to see what it is on an annualized basis so we want to measure the short-term borrowing costs on an annualized basis and what we will notice as we get shorter and shorter terms of maturity so if we go from nine months to six months or from six months

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