The future value factor will decrease:
A) The longer the period of time.
B) The lower the present value factor.
C) The lower the interest rate.
D) The higher the present value.
E) The higher the future value.

Question

Quizplus · Accepted Answer

The future value factor decreases as the interest rate decreases because the future value factor is directly related to the interest rate; a lower interest rate means money will grow at a slower rate over time, leading to a lower future value factor.

The Future Value Factor Will Decrease