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Sammar says

What I don’t get is that calculating the present factor is quite easy with the calculator, the calculators do have the raise to power button, pressing it a little box appears above the value and you can put any number of years you want there.

John Moffat says

By all means just use your calculator. Just make sure that you can use the tables given if it ever becomes necessary.

Marcus says

Hi John,

I am having difficulties with final example, I am not quite sure where I am going wrong

1’500 x 1 =

(1.064)2

Thanks,

Marcus

John Moffat says

If you look at the lecture again, you will see that I am multiplying 1,500 by the discount factor. The discount factor is 1/(1.064^2)

0.064 because the rate of interest is 6.4%. To the power 2 because we are discounting for 2 years.

Marcus says

Hi John,

Thank you for explaining – I had a break and got back to it and it makes sense now 🙂

Thanks,

Marcus

Tamara says

iam having a problem i need to know when to used annunity from when to use presen value when given a question

John Moffat says

You use the annuity factors when you have an equal cash flow each year.

When the cash flows are different each year, then you use the ordinary present value tables.

silvikss says

In the example for min 16:43, shouldn’t t the discount factor be 0.756 as per the table?

John Moffat says

The factor for 15 years at 2% is 0.743

(0.756 is the factor for 2 years at 15% !!)

silvikss says

oh yes, sorry i looked in the wrong place.

thanks

cckeble says

Quite informative easy to follow.

cameliaursu25 says

excellent tuitor

Reena says

How to calculate

x * (1.10)4

x =- 800 /(1.1)4

546.41 now.

I getting difficulty to count it calculator .Please explain

Musa Bin Masood says

firstly , do (1.10)4 then divide and you will get

chandhini says

Thanks a lot! 🙂

chandhini says

@chandhini, OT definitely is a BOON.. Great job Mr.Muffat! You’ve made my life a lot easier! Kudos! 🙂

anttola911 says

This has been very helpful thanks

williamansah says

great, another missing chapter in.

williamansah says

great