If $476 invested today yields $500 in one year's time, what is the discount factor? A)...

Question

Question

If $476 invested today yields $500 in one years time, what is the discount factor? A) 1.05 B) 1.50 C) 0.95 D) 0.05 If the on

Answer 1

Answer #1

Que-1

=RATE(nper,pmt,pv,fv)

=RATE(1,,-476,500) =0.05

Que-2:-

=1/(1+10%) =0.90909

Thus the answer is C) 10.0%

Answer 2

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