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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
Layout and use
of a financial table Interest Rate
Period 1% 2% 10% 20% 50% 1
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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