If the interest rate is zero,the future value interest factor equals
A)0)0.
B)-1.0.
C)1)0.
D)Undefined

Name: If the interest rate is zero,the future value interest factor equals A)0)0. B)-1.0. C)1)0. D)Undefined
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Question

Quizplus · Accepted Answer

When the interest rate is zero, there is no growth or change in the value of the money over time. Therefore, the future value interest factor will be 1.0, as there is no additional growth factor to be considered.

If the Interest Rate Is Zero,the Future Value Interest Factor