Forums›ACCA Forums›How to calculate discount factors???????????ACCA ForumsFRHow to calculate discount factors???????????Nnadir14y agoIf the discount rate is 10% , how do we calculate the discount rate of the next 5 years???? Thanks in AdvanceAAli14y ago#1on calculator for Discount factor: year 1 1.1^-1 = .909090 year 2 1.1^-2 = ..82644 for year 5 1.1^-5 = .62092 just change the power as per year.. :)Nnadir14y ago#2:( No I don't got it. When I made 1.1 to the power of 1, I got 1.1 1.1 to the power of 2 = 1.21 But where do u got 1.1 ?????AAli14y ago#3discount factor is 10%. when you divide 10 by 100 you will get .1 here 1 is of formula.. and please check i have written - minus sign with power..Nnadir14y ago#4Thanks a lot I got it. :DAAli14y ago#5mention not,,MikeLittleTutor14y ago#6problem sortedIIfy10y ago#7thanksHHameeda9y ago#8And how to calculate cumulative discount factor for 4 years?MikeLittleTutor9y ago#9Calculate for year 1, year 2, year 3 and year 4 and add them all together In the exam, this will be given to you within the questionDCDaniel ChisomSupporter7y ago#10But how it is calculated? cumulative discount factor. Thanks, DannyDCDaniel ChisomSupporter7y ago#11I got it. Sign into reply to this topic.
Nnadir14y agoIf the discount rate is 10% , how do we calculate the discount rate of the next 5 years???? Thanks in Advance
AAli14y ago#1on calculator for Discount factor: year 1 1.1^-1 = .909090 year 2 1.1^-2 = ..82644 for year 5 1.1^-5 = .62092 just change the power as per year.. :)
Nnadir14y ago#2:( No I don't got it. When I made 1.1 to the power of 1, I got 1.1 1.1 to the power of 2 = 1.21 But where do u got 1.1 ?????
AAli14y ago#3discount factor is 10%. when you divide 10 by 100 you will get .1 here 1 is of formula.. and please check i have written - minus sign with power..
MikeLittleTutor9y ago#9Calculate for year 1, year 2, year 3 and year 4 and add them all together In the exam, this will be given to you within the question