Each of the following compound interest factors has the same number of periods n) at the same interest rate i). Which one is the table factor for the present value of a single sum?
A) 1.500730
B) 7.153291
C) 0.666342
D) 4.766540

Question

Quizplus · Accepted Answer

The present value of a single sum factor is always less than 1, as it represents the current value of a sum to be received in the future, discounted at a certain interest rate. Option C, 0.666342, is the only factor less than 1, indicating it is the correct present value factor.

Each of the Following Compound Interest Factors Has the Same