# Discount Factor

## Definition

### Health Economics

- The discount factor for year
*t*is given by 1/(1 +*r*)^{t}where r is the annual discount rate. Thus, if*r*= 0.1, the discount factor for*t*= 1 is 0.909 and for*t*= 5 it is 0.620.

- The discount factor for year
*t*is given by 1/(1 +*r*)^{t}where r is the annual discount rate. Thus, if*r*= 0.1, the discount factor for*t*= 1 is 0.909 and for*t*= 5 it is 0.620.

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- Health Economics

1 definition in context

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