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discout factor

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(Querist)
25 January 2011 can anyone tell me what is the formula of discout factor and how to calculate?
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CA Shailesh Kumar Bhagat

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CA Shailesh Kumar Bhagat (Expert)
25 January 2011 Discount factor for what? please write more for reply of query.
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CA Gunjan Kedia

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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.
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jayashri

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jayashri (Querist)
29 January 2011 Thanks........
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