My book says v = 1/(1+i) is the discount factor and d = i/(1+i) is the discount rate. When do you use which?
+118723 My book says v = 1/(1+i) is the discount factor and d = i/(1+i) is the discount rate. When do you use which?
No, I don't think that i get it. normally a with discounts you would talk about i and 1-i (not 1+i) so I am confused.
Is there more to this that you can show us?
+118723 My book says v = 1/(1+i) is the discount factor and d = i/(1+i) is the discount rate. When do you use which?
No, I don't think that i get it. normally a with discounts you would talk about i and 1-i (not 1+i) so I am confused.
Is there more to this that you can show us?
