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Future value interest factor takes ____________.

A. Compounding rate

B. Discounting rate

C. Inflation rate

D. Deflation rate

Answer: Option A

Solution(By Examveda Team)

Future value interest factor takes Compounding rate. Future value (FV) is the value of a current asset at a specified date in the future based on an assumed rate of growth.

This Question Belongs to Commerce >> Financial Management

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Comments ( 1 )

  1. Archna Dhalia
    Archna Dhalia :
    2 months ago

    Future worth premium element takes Accumulating rate. Future worth (FV) is the worth of an ongoing resource at a predefined date later on in light of an expected pace of development

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