Enter the interest rate and number of periods into the calculator to determine the bilateral factor. This calculator can also evaluate any of the variables given the others are known.

## Bilateral Factor Formula

The following formula is used to calculate the bilateral factor.

BF = (1 + r)^n + (1 + r)^-n

Variables:

• BF is the bilateral factor r is the interest rate (decimal) n is the number of periods

To calculate the bilateral factor, add 1 to the interest rate and raise it to the power of the number of periods. Then, add 1 to the interest rate and raise it to the power of the negative number of periods. The sum of these two results is the bilateral factor.

## How to Calculate Bilateral Factor?

The following steps outline how to calculate the Bilateral Factor.

1. First, determine the interest rate (r) as a decimal.
2. Next, determine the number of periods (n).
3. Next, calculate (1 + r)^n.
4. Next, calculate (1 + r)^-n.
5. Finally, calculate the Bilateral Factor (BF) using the formula BF = (1 + r)^n + (1 + r)^-n.
6. After inserting the variables and calculating the result, check your answer with a calculator.

Example Problem:

Use the following variables as an example problem to test your knowledge.

Interest rate (r) = 0.05

Number of periods (n) = 3