Chapter M, Problem 14RE

### Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

Chapter
Section

### Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
1 views

# Next Level The following factors are taken from the compound interest tables for the same number of time periods and the same interest rate: a. 8.137249 b. 50.980352 c. 6.265060 d. 7.142168 e. 0.122892 Identify each of the five compound interest table factors without reference to the tables. Discuss briefly.

To determine

Identify the interest table factors for the given factors.

Explanation

Interest:

Interest is the cost of borrowing money, in other words Interest is the amount charged on the principal value of the money borrowed for the privilege of borrowing money. Interest is to be paid by the borrower and to be received by the lender.

Table value classification can be determined without using table, if the interest rate and period is same.

The given number of e, is the only factor which is less than 1. Hence, e. 0.122892 is the present value of $1. Future value of$1 is the reciprocal of present value of \$1. Hence, a...

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