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## Cumulative Discount Factor TablesThe cumulative discount factor is a multi-period discount factor. It is the sum of the present value factors for each of a series of periods at a given discount rate.For example, the discount factors for a 5-year flow discounted starting at the end of year 1 at 5% is as follows:-
$5,000 * 4.3294 = In the above example, we calculated the Present Value of $5,000 at 5% over a 5 year period. Note when we summed the individual present values for each of the 5 years we get $21,647. When we multiply $5,000 x 4.3294 (the cumulative discount factor) we also get $21,647, not by coincidence. The Cumulative Discount Factor formula used is :- [1 - (1 + r) This calculator allows you to create a table of Cumulative Discount factors derived from a range of interest rates over any time periods of your choosing. To produce a table (single-column or multiple):- - Input the number of columns
- Input the starting percentage rate
- Input the steps in percent change (if not consecutive)
- Input the number of periods required
- Press "Create The List"
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See also ::::
Reserve Fund Internal Rate Of Return Payback Period |

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