Given a discount rate of zero percent and n periods of time, the present value interest factor and future value interest factor are equal.

Name: Given a discount rate of zero percent and n periods of time, the present value interest factor and future value interest factor are equal.
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Question

Quizplus · Accepted Answer

When the discount rate is zero percent, the present value interest factor equals 1 for all periods, and the future value interest factor also equals 1 for all periods. Therefore, they are equal.

Given a Discount Rate of Zero Percent and N Periods