Discount Factor (Future Value)

This is a decimal number that when multiplied by a future value will give the present value.

It is common to convert an interest rate into its corresponding discount factor.
When you have a discount factor you can multiply the cash flow by the discount factor to give its present value.

Simple Interest

Compounded Interest

Continuously Compounded

Discount Factor Curves

© 2021 Better Solutions Limited. All Rights Reserved. © 2021 Better Solutions Limited TopPrevNext