Category:Definitions/Discount Factors

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This category contains definitions related to Discount Factors.
Related results can be found in Category:Discount Factors.


Let $P$ be a principal invested under compound interest with an interest rate $r$ over a number of conversion periods $n$.

The discount factor of $P$ is defined as:

$\paren {1 + r}^{-n}$

This is the amount of principal which will increase to $1$ unit after $n$ conversion periods at interest rate $r$.

Pages in category "Definitions/Discount Factors"

The following 3 pages are in this category, out of 3 total.