Present Value Discount Factor

This topic has 1 reply, 2 voices, and was last updated 9 years ago by Ken Garrett.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
May 30, 2017 at 3:08 pm #389034
wishgirlgy
Member
- Topics: 7
- Replies: 4
June 2012 Question 1 has a discount factor of 12.5%. How do you calculate the present value for that?
May 30, 2017 at 4:32 pm #389050
Ken Garrett
Keymaster
- Topics: 10
- Replies: 10660
For year 1: 1/1.125

For year 2: 1/1.125^2 (where ^ means raise to the power)

For year 3: 1/1,125^3

Etc

Look at the lectures for Chapter 23 of F2 if you need more.
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

The topic ‘Present Value Discount Factor’ is closed to new replies.