If the present-value interest factor for i percent and n periods is 0.270, the future-value interest factor for the same i and n is
A)0.730.
B)3.797.
C)3.704.
D)cannot be determined.

Question

Quizplus · Accepted Answer

The relationship between present value interest factor (PVIF) and future value interest factor (FVIF) can be represented as:
FVIF = 1/PVIF
Therefore, FVIF = 1/0.270 = 3.704 (rounded to three decimal places). 
Hence, the correct answer is option C.

If the Present-Value Interest Factor for I Percent and N