How to find the discount factor of a range of years using calculator. Example, discount factor of year (1-5) @ 10%. Please not the discount factors of each of the years differently?
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General ACCAdiscount factor of a range of years
you mean the annuity? the formula is at the top of the annuity tables for example in the F9 paper
1-(1+r)-n/r
the -n bit is to the power of -n but I can't show that as a smaller -n raised up
r= discount rate ie 0.1 for your 10%
n= number of periods ie 5 for your query
so:
1-(1+0.1) to the power of -5/0.1 = 3.791
10y ago#2ajip: Do not ask this kind of question in the general forum - ask it in the relevant paper forum (which for this question is Paper F2).
And watch the free lectures - our lectures cover everything needed to be able to pass Paper F2 well ( and obviously cover in detail exactly what you have asked ).
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