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If you saw a table containing the following factors, what kind of interest factor would you be looking at? End of Year 6% 1 1.06000

  1. If you saw a table containing the following factors, what kind of interest factor would you be looking at?

End of Year

6%

1

1.06000

2

1.12360

3

1.19101

4

1.26247

5

1.33822

A. Present value of a single amount

B. Future value of a single amount

C. Present value of an annuity

D. Future value of an annuity

  1. Begin with a single sum of money at period 0. First, calculate a future value of that sum at 101%. Then discount that future value back to period 0 at 11.99%. In relation to the initial single sum, the discounted future value:

A. is greater than the original amount.

B. is less than the original amount.

C. is the same as the original amount.

D. cannot be determined with the information given.

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