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    Exam 5: The Time Value of Money
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    What Is the Discount Factor for $1 to Be Received
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What Is the Discount Factor for $1 to Be Received

Question 84

Question 84

Multiple Choice

What is the discount factor for $1 to be received in 5 years at a discount rate of 8 percent?


A) .4693
B) .5500
C) .6000
D) .6806 Discount factor = 1/ (1.08) 5
= 1/1.4693

Correct Answer:

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