For positive interest rates, the future value interest factor is
A) always greater than 1.0.
B) sometimes negative.
C) always less than 0.
D) never greater than 25.

Question

Quizplus · Accepted Answer

The future value interest factor (FVIF) represents the future value of a present sum of money at a given interest rate and time period. Since positive interest rates represent a return on investment, the FVIF will always be greater than 1.0 as the money will have increased in value over time with the interest earned.

For Positive Interest Rates, the Future Value Interest Factor Is