How to Calculate Discount Factor of 10: A Comprehensive Guide
The discount factor, often symbolized as “df,” is a ubiquitous concept in various financial and economic domains. It represents the present value of a specific future cash flow discounted at a particular rate. For example, if you anticipate receiving $100 in one year and the prevailing interest rate is 10%, the discount factor would be 0.909 (1 divided by [ 1 plus (interest rate expressed as decimal) ])