What is the purpose of compound interest tables?

The purpose of compound interest tables is to illustrate the continuous accumulation of interest on a principal amount over time. These tables provide a quick reference for determining how much interest will accrue on an investment or loan when interest is added to the principal, which then itself earns interest in succeeding periods. This compounding effect is crucial for understanding how investments grow or how loans increase in value due to interest. By using these tables, individuals can easily visualize and calculate potential returns on their investments or the total amount owed on loans after a certain period.

Considering the other options, they do not align with the specific function of compound interest tables. Calculating rental agreements generally involves different factors, such as rental rates and terms. Processing the value of loans involves assessments of principal, interest rates, and terms, but it's broader than what compound interest tables provide. Forecasting real estate market trends typically relies on market analysis and economic indicators rather than just interest calculations.