1. Write down the formula to show the present value at Time 0 of 1 at the...

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1. Write down the formula to show the present value at Time 0 of £1 at the end of year 3 at a discount rate of 2%. Then, using a calculator, work out the discounting factor.

2. Write down the formula to show the present value at Time 0 of £1 at the end of year 5 at a discount rate of 4%. Then, using a calculator, work out the discounting factor.

3. Write down the formula to show the present value at Time 0 of £1 at the end of year 2 at a discount rate of 9%. Then, using a calculator, work out the discounting factor.

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