If the interest rate is zero, the future value interest factor equals ________
A) 1.0
B) 2.0
C) 0.0
D) -1.0

Name: If the interest rate is zero, the future value interest factor equals ________ A) 1.0 B) 2.0 C) 0.0 D) -1.0
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Question

Quizplus · Accepted Answer

When the interest rate is zero, there is no growth in the initial investment due to interest, so the future value interest factor is equal to 1.0, which means that the future value of the investment is the same as the present value.

If the Interest Rate Is Zero, the Future Value Interest