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October 28, 2015 at 1:10 am
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
October 28, 2015 at 6:35 am
By all means just use your calculator. Just make sure that you can use the tables given if it ever becomes necessary.
April 22, 2015 at 7:14 pm
I am having difficulties with final example, I am not quite sure where I am going wrong
1’500 x 1 =
April 22, 2015 at 8:14 pm
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.
April 22, 2015 at 11:11 pm
Thank you for explaining – I had a break and got back to it and it makes sense now
October 26, 2013 at 2:37 pm
iam having a problem i need to know when to used annunity from when to use presen value when given a question
October 26, 2013 at 2:47 pm
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.
September 15, 2013 at 7:39 pm
In the example for min 16:43, shouldn’t t the discount factor be 0.756 as per the table?
September 16, 2013 at 8:25 am
The factor for 15 years at 2% is 0.743
(0.756 is the factor for 2 years at 15% !!)
September 16, 2013 at 7:25 pm
oh yes, sorry i looked in the wrong place.
June 3, 2013 at 10:09 pm
Quite informative easy to follow.
February 16, 2013 at 5:05 pm
December 9, 2012 at 7:42 am
How to calculate
x * (1.10)4
x =- 800 /(1.1)4
I getting difficulty to count it calculator .Please explain
Musa Bin Masood says
February 10, 2013 at 6:56 pm
firstly , do (1.10)4 then divide and you will get
November 24, 2012 at 7:59 am
Thanks a lot!
@chandhini, OT definitely is a BOON.. Great job Mr.Muffat! You’ve made my life a lot easier! Kudos!
July 24, 2012 at 11:14 pm
This has been very helpful thanks
July 9, 2012 at 6:10 pm
great, another missing chapter in.
July 9, 2012 at 6:09 pm
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