Assuming an inflationary economy,the future value interest factor is
A)always equal to 1.0.
B)always less than 1.0.
C)always greater than 1.0.
D)always uncertain.

Question

Quizplus · Accepted Answer

In an inflationary economy, the value of money decreases over time, meaning that the future value of money will be greater than its present value. Therefore, the future value interest factor (FVIF) will always be greater than 1.0, as it reflects the factor by which a present value will be multiplied to reach its future value.

Assuming an Inflationary Economy,the Future Value Interest Factor Is