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Discounting Factor In Investments

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Discounting Factor In Investments

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
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  • December 16, 2022 at 11:03 am #674747
    janimdarko@yahoo.com
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    In calculating the discount factor of an investment, why is the rate added to 1?
    As in (1+r). I would like to understand the concept behind (1+r)?

    December 16, 2022 at 4:06 pm #674775
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    Have you watched my free lectures on this, because I do explain the logic in my lectures.

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