Example 8 BB Q1: calculate the present value of the expected loss, I’m not getting the right answer which is 24.4983. The book doesn’t show the steps on how to calculate the PV.
Cash Flow X Discount Factor = Present Value
25 X 0.979930 = 24.4983
Example 8 BB Q1: calculate the present value of the expected loss, I’m not getting the right answer which is 24.4983. The book doesn’t show the steps on how to calculate the PV.
Cash Flow X Discount Factor = Present Value
25 X 0.979930 = 24.4983