Lecture Notes on Time Value of Money
9. Why is (1+i) called an interest factor? Factoring the expression $10,000 + 10,000 x i = 10,000 x (1+i) Thus (1+i) is an interest factor. 10. Suppose you make an investment of $1,000. This first year the investment returns 5%, the second year it returns i. ................
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