1. Find Present value factor for Interest rate i = 10%, Compounded (n) = 3, using Compound Interest method

Solution:
`i=10%=0.1` per year (Interest rate)

`n=3` years (Number of periods)

Present value factor
`PVF=1/(1+i)^n=(1+i)^-n`

`=(1+0.1)^-3`

`=(1.1)^-3`

`=0.7513`

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2. Find Present value factor for Interest rate i = 5%, Compounded (n) = 5, using Compound Interest method

Solution:
`i=5%=0.05` per year (Interest rate)

`n=5` years (Number of periods)

Present value factor
`PVF=1/(1+i)^n=(1+i)^-n`

`=(1+0.05)^-5`

`=(1.05)^-5`

`=0.7835`

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