The higher the interest rate,the higher the future value interest factor,other things being equal.

Question

Quizplus · Accepted Answer

This is because the future value interest factor (FVIF) takes into account both the interest rate and the time period over which the interest will compound. A higher interest rate means that the investment will grow at a faster rate, resulting in a higher FVIF. However, it is important to note that other factors such as the length of the time period and the compounding frequency can also affect the FVIF.

The Higher the Interest Rate,the Higher the Future Value Interest