I was confused with present value calculation on Schweser Book 4, P.90 Example #1. When you try to find out PV, what is the difference between discounting the value by, 1. 1+R(n/360) 2. (1+R)^(N/360) It appears that they use it interchangeably in this question…but is there any rule as to which formula I should apply for certain situation? Many thanks in advance!

- applies to simple interest 2. applies to compound interest for the most part u shoulds be usuing the latter