Python Exercises for Corporate Finance and Risk Management

1 / 26
Index Next  

Question: 15 

Q: The future value of $125 is $139, what is the appropriate value for the discount factor.
INSTRUCTIONS

In case of calculating discount factor, we need know the present amount and, what would be future value of the that amount. In this question, we are assuming the total time would be one year and present value and future of the amount is already given in the question. To calculate discount factor, we will use the given information. Present value and future value of the amount is already given.

  • Define the a function with the name "discount_factor" which will take two arguments, present value and future value.
  • The signature of the function should be like:

def discount_factor(present_value, future_value):

  • Present value and future value of the amount is already given in the question. we just have to apply the following formula to find the value of the discount factor.

  • By applying the formula:

  • Discount Factor = (Present value / Future value)

To run the program enter "Shift+Enter"

Get Hint See Answer


Note - Having trouble with the assessment engine? Follow the steps listed here

Index Next  

Loading comments...