[emitch]

Although discount factors are given in the exam up to 20% it is a fairly easy equation to work out what the discount factor is.
1/(1+df%)n where n=number of years

(sorry there is no option to super/subscript, so n is to the power of) hope you understand

ie: 10% discount factors= so 25% discount factors

1/1.1 =0.909 1/1.25 =0.800
1/1.1squared =0.826 1/1.25 squared =0.640
1/1.1 to the power of 3=0.751 1/1.25 to power 3 =0.512

and so on. Hope this helps

[Author]

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