When using a future value of an annuity table (e.g., Table III at the back of the book),
A)payments are assumed to be made at the end of each period
B)FVIFA factors increase with an increase in the interest rate
C)FVIFA factors increase with an increase in the number of periods
D)all of these

Question

Quizplus · Accepted Answer

When using a future value of an annuity table, payments are assumed to be made at the end of each period. FVIFA factors increase with an increase in the interest rate and increase with an increase in the number of periods. Therefore, all of the options presented are correct.

When Using a Future Value of an Annuity Table (E