If the present value annuity factor at 10% APR for 10 years is 6.1446, what is the equivalent future value annuity factor?
A) 3.108
B) 15.9374
C) 2.5937
D) None of the above

Question

Quizplus · Accepted Answer

The formula for finding the equivalent future value annuity factor is: 
Future Value Annuity Factor = Present Value Annuity Factor * (1 + APR)^n 
where APR is the annual percentage rate and n is the number of years.

Plugging in the values, we get: 
Future Value Annuity Factor = 6.1446 * (1 + 0.1)^10 ≈ 15.9374

Therefore, the best choice is B with the explanation that we use the formula to find the future value annuity factor and plug in the values to get the answer.

If the Present Value Annuity Factor at 10% APR for 10