If the present value annuity factor at 10% for 10 years is 6.1446,what is the equivalent future value annuity factor?
A)3.1080
B)15.9375
C)2.5937
D)8.4132

Question

Quizplus · Accepted Answer

The formula for finding the equivalent future value annuity factor is:
EFVAF = (1 + r)n * PVAF

Where r is the interest rate, n is the number of years, PVAF is the present value annuity factor, and EFVAF is the equivalent future value annuity factor.

Using the given information, we can solve for EFVAF:

EFVAF = (1 + 0.1)10 * 6.1446
EFVAF = 15.9375

Therefore, the correct answer is B.

If the Present Value Annuity Factor at 10% for 10