Question
can you explain to me how to find the discount rate given the fv and pv ie. PV (1 + r)^t = FV 680.58 (1
can you explain to me how to find the discount rate given the fv and pv ie. PV (1 + r)^t = FV 680.58 (1 + r)^5 = 1000 (1 + r) ^5 = 1000 / 680.58 = 1.4693 FV factor for 5 years at r using tables r = 8% 1 + r = (1.4693)^1/5 = 1.08 r = 0.08 or 8% I can't follow the answer and don't understand
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Derivatives Markets
Authors: Robert L. McDonald
2nd Edition
032128030X, 978-0321280305
