Question

For positive interest rates, the future value interest factor is? sometimes negative. always less than 0. always greater than 1.0. never greater than 25.

Answer 1

Answer: For positive interest rates, the future value interest factor is  always greater than 1.0

What is Future Value Interest Factor?

Explanation:

Future Value Interest Factor or FVIF heps in caculating the future value of cash flow (paid in the future).

• This component heps in determining the compounding effect of cash flows occuring in regular intervals in future.

• Formula of FVIF is  ( 1+r )$n$ where r is the interest rate per period and n is the number of time periods.
• Therefore positive interest rates of FVIF is aways greater than the vaue 1.0
• The three crucial determinants required to calcuate the Future Value Interest Factor are compounding period, time period and interest rate.

To learn more about Future Value Interest Factor refer brainly.com/question/26527156

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