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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Example compound instrument ch.28 f7 notes
Hello,
Could you please explain how you find out the column with the Discount factor?
9346, 8734 and 8163?
Thank you
Put in your calculator ‘1’
Then divide that by 1.07 ie, by 1 + the discount factor expressed as a percentage
There you have .9346
Now divide that by 1.07 and you arrive at .8734
And again and you’ll find .8163
Now, what you really must consider is watching John’s F2 videos and remind yourself about discounting!
OK?