The same tables can be used to figure future values and present values of $1.

Question

Quizplus · Accepted Answer

The same tables that are used to calculate the future value of $1 can also be used to calculate the present value of $1, by using the reciprocal of the future value factor. These tables are based on the principles of time value of money, where the future value tables are used to find the amount to which $1 will grow at a certain interest rate over a number of periods, and the present value tables are used to find the amount that $1 due in the future is worth today, given a certain interest rate and number of periods.

The Same Tables Can Be Used to Figure Future Values