Question
Given r (discount rate) and n (period) greater than zero, which of the following is true: a. Present value interest factors (here a factor means
Given r (discount rate) and n (period) greater than zero, which of the following is true:
a. Present value interest factors (here a factor means you set future value=$1) are less than 1.0.
b. Future value interest factors (here a factor means you set present value=$1) are less than 1.0.
c. Present value interest factors (factor is defined in the same way as in a.) are greater than future value interest factors.
d. Present value interest factors (factor is defined in the same way as in a.) grow as n grows, provided r is held constant.
e. None of the statements above is correct.
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