Present Value/Discount Flashcards
0
Q
What is the formula for compound interest discount factor?
A
a^-1(t) = 1/(1+t)^t
1
Q
What is the formula for simple interest discount factor?
A
a^-1(t) = 1/(1+it)
What is the formula for compound interest discount factor?
a^-1(t) = 1/(1+t)^t
What is the formula for simple interest discount factor?
a^-1(t) = 1/(1+it)