Discount factor calculation based on periodic interest rate and number of periods formula
Description of the Discount factor calculation based on periodic interest rate and number of periods formula
Formula for the calculation of a discount factor based on the periodic interest rate and the number of interest periods
Formula
\[ PV_{f}=\frac{1}{\left ( 1 + i \right )^{n}} \ \]
Symbols
\(i\ \)
Periodic interest rate
\(n\ \)
Number of periods