Definitions for

**"Discount factor"**Present value of EUR 1 received some time in the future.

Present value of $1 received at a stated future date.

A scalar value between 0 and 1 which determines the present value of future rewards. If the discount factor is 0, the agent is concerned with maximizing immediate rewards. As the discount factor approaches 1, the agent takes more future rewards into account. Algorithms which discount future rewards include Q-learning and TD(lambda).

Discounted cash flow DCF Discounted dividend model DDM

a simple concept

Discount Interest Discount payment