In determining the interest factor (IF) for the present value of $1, one could use the reciprocal of the IF for the future value of $1 at the same rate and time period.

Question

Quizplus · Accepted Answer

This is correct. The interest factor (IF) for the present value of $1 is the reciprocal of the IF for the future value of $1 at the same rate and time period. This is because the present value is essentially the inverse of the future value. So, if you know one, you can easily calculate the other by taking the reciprocal.

In Determining the Interest Factor (IF) for the Present Value