How to Master the Discount Factor to Interest Formula

How to Master the Discount Factor to Interest Formula

The discount factor to interest formula is a mathematical equation used to calculate the present value of a future cash flow. It is a key tool in financial planning and can be used to make investment decisions, determine the value of a company, and calculate the cost of debt.

The discount factor is a number that represents the present value of $1 received at a specified future date. It is calculated using the following formula:

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