- This topic has 5 replies, 6 voices, and was last updated 13 years ago by
.
Viewing 6 posts - 1 through 6 (of 6 total)
- Posts
If the discount rate is 10% , how do we calculate the discount rate of the next 5 years????
Thanks in Advance
With the help of discount rate we present value of money.
for example if we have 10% discount rate and we want to calculate present of 1000$ in two year.
solution:- 1000*(1+0.10)^(-3) =751.315
10% =0.10
present value of 1000 in 4years?
solution:- 1000*(1+0.10)^(-4) =683.01
- Topics: 0
- Replies: 1
- ☆
In calculating Discount Factor,the below formular can be applied
P*1/(1+r)^n where r=rate, n=number of years and P=principal.So for example if you want to find the value $500 in 3years time,then it will be =500*1/(1+0.1)^3=
500*0.75=$375.66
Viewing 6 posts - 1 through 6 (of 6 total)
- You must be logged in to reply to this topic.