Which factor would be greater - the present value of $1 for 10 periods at 8% per period or the future value of $1 for 10 periods at 8% per period?
A) Present value of $1 for 10 periods at 8% per period.
B) Future value of $1 for 10 periods at 8% per period.
C) The factors are the same.
D) Need more information.

Question

Quizplus · Accepted Answer

The future value of $1 for 10 periods at 8% per period would be greater since it includes the interest earned on the initial amount over 10 periods, while the present value factor only discounts the initial amount back to its present value.

Which Factor Would Be Greater - the Present Value of $1