The one-year discount factor, at an interest rate of 100% per year, is: 0.25 1.00 1.50...

Question

Question

The one-year discount factor, at an interest rate of 100% per year, is:

business finance

Answer 1

Answer #1

One-Discount factor at an interest rate of 100% is

Discount factor = [1 / (1 + R)]ⁿ

Discount Factor = [1 / (1 + 100%)]¹

Discount Factor = 1 / 2

Discount Factor = 0.50

Answer 2

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