For positive interest rates, the future value interest factor is? sometimes negative. always less than 0. always greater than 1.
1 answer:
Answer: For positive interest rates, the future value interest factor is always greater than 1.0
<h3>What is Future Value Interest Factor?</h3>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 )
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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