discout factor
This query is : Resolved
25 January 2011
can anyone tell me what is the formula of discout factor and how to calculate?
25 January 2011
Discount factor for what? please write more for reply of query.
CA Gunjan Kedia
(Expert)
26 January 2011
Hi Jayashri,
discounting factor is also known as PV (present value) factor. the formula for calculating present value is:
PV = FV/(1+r)^n
where FV = Future value.
and r = rate of interest
and n = period
in the above formula 1/(1+r)^n is also known as discounting factor or PV factor.
discounting factor is also known as PV (present value) factor. the formula for calculating present value is:
PV = FV/(1+r)^n
where FV = Future value.
and r = rate of interest
and n = period
in the above formula 1/(1+r)^n is also known as discounting factor or PV factor.
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