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The 2 year discount factor is .92. what is the present value of $1 to be received in year 2

The 2 year discount factor is .92. what is the present value of $1 to be received in year 2
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3 votes
The 2 year discount factor is .92. what is the present value of $1 to be received in year 2

User Tdehaeze
by
8.6k points

1 Answer

3 votes
FW = PW×(1+i)^n

where
PW = $1
i = 0.92
n = 2

FW = 3.6864 = $3.69
User PressingOnAlways
by
7.8k points
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