Enter the principal loan amount, discount rate per period, and total number of periods into the calculator to determine the Discounted Loan Sum. This calculator can also evaluate any of the variables given the others are known.
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Dls Formula
The following formula is used to calculate the Discounted Loan Sum (DLS).
DLS = P / (1 + r)^n
Variables:
- DLS is the Discounted Loan Sum
- P is the principal loan amount
- r is the discount rate per period
- n is the total number of periods
To calculate the Discounted Loan Sum, divide the principal loan amount by the result of adding 1 to the discount rate and raising it to the power of the total number of periods.
How to Calculate Dls?
The following steps outline how to calculate the Discounted Loan Sum (DLS) using the formula: DLS = P / (1 + r)^n.
- First, determine the principal loan amount (P).
- Next, determine the discount rate per period (r).
- Next, determine the total number of periods (n).
- Next, insert the values of P, r, and n into the formula DLS = P / (1 + r)^n.
- Finally, calculate the Discounted Loan Sum (DLS).
- After calculating the result, check your answer with the calculator above.
Example Problem:
Use the following variables as an example problem to test your knowledge:
Principal loan amount (P) = $5000
Discount rate per period (r) = 0.05
Total number of periods (n) = 10
