Compounding factor and SRI: Difference between pages

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imported>Doug Williamson
(Layout.)
 
imported>Doug Williamson
(Link with ESG investment page.)
 
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''Financial maths.''
Sustainable and Responsible Investment.  
 
(CF).
 
A compounding factor is a number greater than one, that we multiply a present value by, to work out its [[Future Value]] (FV) as:
 
FV = CF x present value.
 
 
The Compounding Factor is calculated from the periodic yield as:
 
CF = (1 + periodic yield)<sup>n</sup>
 
Where:
 
n = number of periods
 
 
<span style="color:#4B0082">'''Example'''</span>
 
Annual effective yield (r) = 6%.
 
Number of years in the total period (n) = 2.
 
Then:
 
Compounding Factor = (1 + r)<sup>n</sup>
 
= 1.06<sup>2</sup>
 
= 1.1236.




== See also ==
== See also ==
* [[Compounding effect]]
* [[Corporate social responsibility]]
* [[Discount factor]]
* [[ESG investment]]
* [[Future value]]
* [[SRA]]
* [[Present value]]
* [[Sustainability]]


[[Category:Financial_management]]
[[Category:Investment]]
[[Category:Corporate_finance]]
[[Category:Ethics_and_corporate_governance]]
[[Category:Manage_risks]]

Revision as of 09:00, 16 July 2019

Sustainable and Responsible Investment.


See also