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The PMT function calculates the payment required in each period to pay back the loan.
Bid-ask Spreads
The variation between the top price a buyer intends to pay (bid) and the bottom price a seller is prepared to take (ask) for an asset.
Market Equilibrium
The state in which market supply and demand balance each other, and as a result, prices become stable.
Competitive Industry
Competitive industries are characterized by three factors: (1) firms produce a product or service with very close substitutes meaning demand is very elastic, (2) firms have many rivals and no cost advantage over those rivals, and (3) the industry has no barriers to entry or exit.
Market Demand
The total volume of goods or services that consumers in a specific market are willing and able to purchase at different price levels.
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