The Discount & Percent Value By Using Simple Interest: = X Discount = Future Value x Discount Rate x Time D FV 1 Percent Value = Future value - Discount Pv FV D Or PV Fv (Fv xi XT) A loan with a future value BD 8,440 with 9% simple interest rate matures on 8th Oct 2008 is converted to cash at Al-Ahli bank on 15th Jun 2008. Calculate the present value & discount. *** ........... . . . . . . . . ... ... ******************* ... ... ... ... ... *** : : ... 1 : : : : - - - : : : : : . *** . . By Using Compound Interest: PV FV X (1+1) D Fv PV EXAMPLE 3-2: (Page 62) A debt of BD 9,000 dues after 2 years at discount compound rate of 7% annually. Compute the following: 1. Present value 2. Discount : ... ... ... : : ... : : : : : : : : : : : . *** : : : *** *** *** : : : ***