If the present value annuity factor at 8% for 10 years is 6.71,what is the equivalent future value annuity factor?
A)3.108
B)14.486
C)2.159
D)5.384

Question

Quizplus · Accepted Answer

The formula for finding the equivalent future value annuity factor is:

Future value annuity factor = (1 + interest rate)^n - 1 / interest rate

Plugging in the values given:

Future value annuity factor = (1 + 0.08)^10 - 1 / 0.08

Future value annuity factor = 14.486

If the Present Value Annuity Factor at 8% for 10