When using a future value of an annuity table (e.g., Table III at the back of the book),
A) payments are assumed to be made at the end of each period
B) FVIFA factors increase with an increase in the interest rate
C) FVIFA factors increase with an increase in the number of periods
D) all of the above

Question

Quizplus · Accepted Answer

The future value of an annuity table assumes payments made at the end of each period. FVIFA factors increase with an increase in either the interest rate or the number of periods, so both statements B and C are also true.

When Using a Future Value of an Annuity Table (E