How to calculate Interest Rate from Discount Factor?
Question: Given a discount factor of .9671, what is the interest rate? Round to two decimal places.
I thought that would be the Discount Rate which is 0.9671 = 1 / (1+DR), or ~0.34, but that's showing up as an incorrect answer. So how would I go about getting to the Interest Rate?
- BryceLv 71 month agoFavorite Answer
0.9671 = 1 / (1+DR)
1+DR= 1/0.9671≈ 1.0340
DR= 0.0340= 3.40%