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Continuous Discounting

Reference: ADN-285-E
Number of pages: 5
Publication Date: Feb 14, 2020
Source: IESE (España)
Type of Document: Technical Note

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Description

This technical note discusses how discounting works when it is done for periods shorter than a year

Learning Objective

This technical note helps in any class that involves the discounting of flows. In class it is normal to start with simple discounting. This note helps explain how discounting works when it is done for periods shorter than a year. It explains how to get to continuous discounting in a natural way.

Keywords

CONTINUOUS COMPOUNDING AND DISCOUNTING