As26

Accountancy

I just need to confirm this Discounting factor = for calculating present value Annuity factor for calculating future value Is that’s the diff ? If no pls explain what’s the diff btwn 2

Sushmita Chowdhury

CA Inter

★ 2K+

16-Feb-24 17:04

405

Answers (3)

Yes they are diff. FV is to know value after say 5 years if you contribute amt every year. Pv is to know today’s worth of contributing 1 every year for 5 years

CA Suraj Lakhotia

Admin

16-Feb-24 17:07

As in let’s say 100 After 5yrs it will be 150 Before 5yrs it was 20 From 100 to 150 = annuity factor apply ? 100-20 = discounting factor That’s the diff in annuity and discounting factor ?

Thread Starter

Sushmita Chowdhury

CA Inter

★ 2K+

16-Feb-24 18:06

I have resolved this query Thank you

Thread Starter

Sushmita Chowdhury

CA Inter

★ 2K+

17-Feb-24 02:36

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