1. Find Discount factor table
i = 1, i Increment by = 1, Total column = 10
n = 1, n Increment by = 1, Total row = 15
Solution:
Discount Factor Table
Present value of $1 in the Future at Discount Rate i%
`PVIF_(i,n)=1/(1+i)^n`
| n \ i | 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% |
| 1 | 0.9901 | 0.9804 | 0.9709 | 0.9615 | 0.9524 | 0.9434 | 0.9346 | 0.9259 | 0.9174 | 0.9091 |
| 2 | 0.9803 | 0.9612 | 0.9426 | 0.9246 | 0.907 | 0.89 | 0.8734 | 0.8573 | 0.8417 | 0.8264 |
| 3 | 0.9706 | 0.9423 | 0.9151 | 0.889 | 0.8638 | 0.8396 | 0.8163 | 0.7938 | 0.7722 | 0.7513 |
| 4 | 0.961 | 0.9238 | 0.8885 | 0.8548 | 0.8227 | 0.7921 | 0.7629 | 0.735 | 0.7084 | 0.683 |
| 5 | 0.9515 | 0.9057 | 0.8626 | 0.8219 | 0.7835 | 0.7473 | 0.713 | 0.6806 | 0.6499 | 0.6209 |
| 6 | 0.942 | 0.888 | 0.8375 | 0.7903 | 0.7462 | 0.705 | 0.6663 | 0.6302 | 0.5963 | 0.5645 |
| 7 | 0.9327 | 0.8706 | 0.8131 | 0.7599 | 0.7107 | 0.6651 | 0.6227 | 0.5835 | 0.547 | 0.5132 |
| 8 | 0.9235 | 0.8535 | 0.7894 | 0.7307 | 0.6768 | 0.6274 | 0.582 | 0.5403 | 0.5019 | 0.4665 |
| 9 | 0.9143 | 0.8368 | 0.7664 | 0.7026 | 0.6446 | 0.5919 | 0.5439 | 0.5002 | 0.4604 | 0.4241 |
| 10 | 0.9053 | 0.8203 | 0.7441 | 0.6756 | 0.6139 | 0.5584 | 0.5083 | 0.4632 | 0.4224 | 0.3855 |
| 11 | 0.8963 | 0.8043 | 0.7224 | 0.6496 | 0.5847 | 0.5268 | 0.4751 | 0.4289 | 0.3875 | 0.3505 |
| 12 | 0.8874 | 0.7885 | 0.7014 | 0.6246 | 0.5568 | 0.497 | 0.444 | 0.3971 | 0.3555 | 0.3186 |
| 13 | 0.8787 | 0.773 | 0.681 | 0.6006 | 0.5303 | 0.4688 | 0.415 | 0.3677 | 0.3262 | 0.2897 |
| 14 | 0.87 | 0.7579 | 0.6611 | 0.5775 | 0.5051 | 0.4423 | 0.3878 | 0.3405 | 0.2992 | 0.2633 |
| 15 | 0.8613 | 0.743 | 0.6419 | 0.5553 | 0.481 | 0.4173 | 0.3624 | 0.3152 | 0.2745 | 0.2394 |
This material is intended as a summary. Use your textbook for detail explanation.
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