Each of the following compound interest factors has the same number of time periods and/or rents (n)at the same interest rate (i).Which one is the table factor for the present value of a single sum?
A)1.500730
B)7.153291
C)0.666342
D)4.766540

Question

Quizplus · Accepted Answer

The table factor for the present value of a single sum is the factor that allows us to find the present value of a future amount, meaning that we are discounting a future amount back to the present. The other factors listed are for finding the future value of a present amount, the present value of an annuity, and the future value of an annuity, respectively. Only option C is the table factor for the present value of a single sum.

Each of the Following Compound Interest Factors Has the Same