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Simple Discount Agreement

PV: present value, the discount amount to be paid before the original maturity date Once NHS England has defined the business framework (in accordance with paragraph 3.26 of the VPAS 2019), all new business flexibilities, similar to simple confidential and complex patient access systems, will operate in accordance with the new business framework. The term (100 – rt) is called a discount factor with a simple discount The company should then fill in the offer template for the patient access system either for a complex scheme or for a simple discount system. The model is the tool used by PASLU to gather the information needed to assess the feasibility of the proposed patient access system in the NHS in England and Wales. The company completes the draft proposal and then submits it to NHS England (with all supporting documents), which will then be forwarded to PASLU for verification. Apparently, the formulas of interest and simple discount are similar; There is, however, a substantial difference: the amount to which the formula is applied is the initial capital in the interest rate formula, while the corresponding amount is the final capital in the discount formula. Simple reduction – Basics In the simple reduction situation, a sum of money (future value) is due on a given date, normally within a year; the debtor may demand the advance and, if the creditor agrees with him, the money to be paid (present value) is less than the capital due; Indeed, the future value is deducted by the discount calculated based on time and discount rate The Pharmaceutical Price Regulation Scheme (PPRS) 2014 provides that companies can submit proposals for patient access systems to NHS England. These systems include innovative price agreements aimed at improving cost-effectiveness and facilitating patients` access to certain medicines or other technologies. Simple discount systems can be either a fixed price agreement lower than the list price of the treatment or a percentage reduction in the list price. As these systems are less complex and easier to implement in the NHS (compared to complex systems), the PASLU review can be carried out with a lower degree of consultation with the NHS. This usually allows for a quick paslu verification within 4 weeks. During the transition from PPRS 2014 to VPAS (2019), simple confidential and complex access systems will continue to operate and will be available for new products with existing processes (see section 3.28 of VPAS 2019).

Example 2. Jeff O`Sullivan sold goods for 350 goods to a customer that are due on April 30. If Mr. O`Sullivan on March 15 granted a deposit from the customer with a discount rate of 2.5%, how much would he receive? Use the direct formula and a 365-day response year: FV = 350.00 r = 2.5% d = 46 PV = [FV (36,500 – r x d)]/36.5 00 PV = [350.00 (36,500 – 2.5 x 46)]/36,500 Therefore, Mr. O`Sullivan has 348.90 46 days in advance. The determination of the present value or discounting, as it is generally called, is not simply the opposite of the search for future value on the formula of interest rates A simple discount rate, r, is applied to the final amount FV and leads to the formula companies that wish to present a patient access system must conduct an initial discussion about their intention to submit a scheme. . . .


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