Sep 23, 2019 · i = (FV / PV) (1 / n) - 1 i = (5,000 / 1,500) (1 / 10) - 1 i = 0.1279 or 12.79%. The same answer can be obtained using the discount rate formula in Excel as follows: i = RATE (n,,PV,-FV) i = RATE (10,,1500,-5000) i = 12.79%. *don’t forget the minus sign on FV. Discount definition, to deduct a certain amount from (a bill, charge, etc.): All bills that are paid promptly will be discounted at two percent. See more. Discount Factor Formula – How to Use, Examples and More. COUPON (3 days ago) The discount factor formula includes the discount rate. In simple words, we can say that the discount factor is a conversion factor when calculating the time value of money.