NAC361.256. “Compound interest and annuity tables” defined.

“Compound interest and annuity tables” means the six sets of factors or coefficients that embrace the fundamentals of the mathematics of finance. The various factors are here called present worth of 1, present worth of 1 per annum, future worth of 1, future worth of 1 per annum, sinking fund and mortgage repayment. The first type of factor, present worth of 1, is derived from the formula:

                                                                             1

                                                                                        n

                                                                 ^{______________________}

                                                                         (1 + r)

Where “r” is the discount (capitalization) rate and “n” is the number of periods. All other factors are derived from the mathematical manipulation of this formula. Other names are sometimes given to some of the factors such as “reversion” for present worth of 1, “Inwood” for the present worth of 1 per annum and many names for mortgage repayment.

     [Tax Comm’n, Property Tax Reg. part No. 15, eff. 10-30-79]