The values shown in these tables are easily developed

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Unformatted text preview: es shown in these tables are easily developed from formulas, with various degrees of rounding. The tables are typically CHAPTER 4 Time Value of Money 133 FIGURE 4.3 Financial Tables Layout and use of a financial table Interest Rate Period 1% 2% 10% 20% 50% 1 2 3 X.XXX 10 20 50 indexed by the interest rate (in columns) and the number of periods (in rows). Figure 4.3 shows this general layout. The interest factor at a 20 percent interest rate for 10 years would be found at the intersection of the 20% column and the 10-period row, as shown by the dark blue box. A full set of the four basic financial tables is included in Appendix A at the end of the book. These tables are described more fully later in the chapter. Financial Calculators Financial calculators also can be used for time value computations. Generally, financial calculators include numerous preprogrammed financial routines. This chapter and those that follow show the keystrokes for calculating interest factors and making other financial computations. For convenience, we us...
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This document was uploaded on 03/03/2014 for the course MBA BMMF at Open University Malaysia.

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