Multiplying by means that if $.75 is invested at a certain rate of interest for a certain number of periods, it would be worth $1 in the past.

Name: Multiplying by means that if $.75 is invested at a certain rate of interest for a certain number of periods, it would be worth $1 in the past.
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Question

Quizplus · Accepted Answer

Multiplying by a factor to determine future value from present value is incorrect. Instead, you would divide by a factor to find the present value of a future amount.

Multiplying by Means That If