How are the interest factors (IFs) in Exhibit 33 developed? How may financial calculators be used to

Question:

How are the interest factors (IFs) in Exhibit 3€“3 developed? How may financial calculators be used to calculate interest factors in Exhibit 3€“3?

Exhibit 3.3

Interest Factors for an Amount of $1 at Compound Interest for Various Interest Rates and Compounding Periods

Rate 10% 1.100000 1.210000 1.331000 1.464100 Year 15% 6% 20% 1.200000 1.440000 1.728000 2.073600 2.488320 1 1.060000 1.1

Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound... Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...

Fantastic news! We've Found the answer you've been seeking!