The present value interest factor is
A)always less than 1.0.
B)always more than 1.0.
C)always equal to 1.0.
D)always between 1.0 to 2.0.

Question

Quizplus · Accepted Answer

The present value interest factor (PVIF) represents the factor by which a future amount must be multiplied in order to calculate its present value. Since the present value is always less than the future value, the PVIF must be less than 1.0.

The Present Value Interest Factor Is