October 2015

Compound Interest, Future Value, and Present Value When money is borrowed, the amount borrowed is known as the loan principal. For the borrower, interest is the cost of using the principal. Investing money is the same as making a loan. The interest received is the return on the investment. Compound Read more…

?????????????????????????????????????????????????????????????????????Present Value Factor for a Single Future Amount (Interest rate = r, Number of periods = n) n \ r 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 1 0.9901 0.9804 0.9709 0.9615 0.9524 2 0.9803 0.9612 0.9426 0.9246 0.9070 3 Read more…