The future value interest factor is
A)always equal to 1.0.
B)always less than 1.0.
C)always greater than 1.0.
D)always uncertain.

Question

Quizplus · Accepted Answer

The future value interest factor (FVIF) is a multiplier used to calculate the future value of a present sum of money. It is always greater than 1.0 as it represents the growth rate of the investment over time. A value of 1.0 indicates no growth or interest, while values greater than 1.0 indicate growth and compounding interest.

The Future Value Interest Factor Is