CISO and Compounding factor: Difference between pages

Revision as of 11:48, 22 February 2018

(CF).

A number greater than one which 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)ⁿ

Where:

n = number of periods

Example

Annual effective yield (r) = 6%.

Number of years in the total period (n) = 2.

Then:

Compounding Factor = (1 + r)ⁿ

= 1.06²

= 1.1236.

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-Chief Information Security Officer.
+(CF).
+A number greater than one which 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 ==
-* [[Chief Information Officer]]
+* [[Compounding effect]]
-* [[CIO]]
+* [[Discount factor]]
-* [[CTO]]
+* [[Future value]]
+* [[Present value]]
+[[Category:Financial_management]]
+[[Category:Corporate_finance]]
+[[Category:Manage_risks]]