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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
- 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
- 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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