FRHow to calculate discount factors???????????

on 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..

:)

:(
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 ?????

discount 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..

Thanks a lot I got it. :D

mention not,,

problem sorted

thanks

And how to calculate cumulative discount factor for 4 years?

Calculate 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

But how it is calculated? cumulative discount factor. Thanks, Danny

I got it.