Present Value of 1 Future Value of 1 Present Value of an Annuity of 1 Future Value of an Annuity of 1 At an annual interest rate of 8% compounded annually, $5,300 will accumulate to a total of $7,210.65 in 5 years.
FV Factor = Future Value/Present Value
FV Factor = $7,210.65/$5,300 = 1.3605
1.3605 is the future value of $1 factor for 4 periods at 8%

Question

Present Value of 1  Future Value of 1  Present Value of an Annuity of 1  Future Value of an Annuity of 1  At an annual interest rate of 8% compounded annually, $5,300 will accumulate to a total of $7,210.65 in 5 years.
FV Factor = Future Value/Present Value
FV Factor = $7,210.65/$5,300 = 1.3605
1.3605 is the future value of $1 factor for 4 periods at 8%

Quizplus · Accepted Answer

The Answer is False