Forums › ACCA Forums › ACCA FR Financial Reporting Forums › How to calculate discount factors???????????
- This topic has 11 replies, 6 voices, and was last updated 6 years ago by danny07.
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- September 24, 2011 at 5:34 am #49904
If the discount rate is 10% , how do we calculate the discount rate of the next 5 years????
Thanks in Advance
September 24, 2011 at 8:12 am #88358on calculator for Discount factor:
year 11.1^-1 = .909090
year 2
1.1^-2 = ..82644
for year 5
1.1^-5 = .62092just change the power as per year..
🙂
September 25, 2011 at 6:18 am #88359🙁
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 = 1.21But where do u got 1.1 ?????
September 25, 2011 at 8:11 am #88360discount 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..
September 25, 2011 at 11:31 am #88361Thanks a lot I got it. 😀
September 25, 2011 at 3:51 pm #88362mention not,,
October 16, 2011 at 12:39 pm #88363problem sorted
March 7, 2016 at 11:36 am #304007thanks
September 20, 2016 at 1:03 pm #341009And how to calculate cumulative discount factor for 4 years?
September 23, 2016 at 4:20 pm #341476Calculate 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
October 12, 2018 at 7:55 pm #477676But how it is calculated? cumulative discount factor.
Thanks,
DannyOctober 12, 2018 at 8:02 pm #477677I got it.
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