Common use of Present Value Factor Clause in Contracts

Present Value Factor. the factor that discounts to present value the costs resulting to Lender from the difference in interest rates during the months remaining in the Yield Maintenance Period, using the Assumed Reinvestment Rate as the discount rate, with monthly compounding, expressed numerically as follows: 1 - (1 divided by (1+ARR))n ARR n = number of months or partial months remaining in Yield Maintenance Period ARR = Assumed Reinvestment Rate

Present Value Factor. the factor that discounts to present value the costs resulting to Lender from the difference in interest rates during the months remaining in the Yield Maintenance Period, using the Assumed Reinvestment Rate as the discount rate, with monthly compounding, expressed numerically as follows: 1 - (1 divided by (1+ARR))n ARR n = number of months or partial months remaining in Yield Maintenance Period ARR = Assumed Reinvestment Rate