The decimal equivalent for an interest rate on a unit amount for a time period. It is computed by interest rate divided by number of days in basic year times the number of days accrued.
In a table, numbers derived from formulas used to determine the present or future value of money. Interest factors are a function of interest rate and time, and can be derived for any combination of the two.
One of three factors taken into consideration by an insurance company when calculating premium rates. This is an estimate of the overall average interest that will be earned by the insurer on invested premium payments.