Question: 1 . Which is greater: the future value interest factor ( FVIF ) for 1 0 percent and two years, or the present value interest

1 .

Which is greater: the future value interest factor

(

FVIF

)

for

10

percent and two years, or the present value interest factor

(

PVIF

)

for

10

percent and two years?

2 .

What happens to the present value of an annuity as the interest rate increases? What happens to the future value of an annuity as the interest rate increases?

3 .

Which would you prefer to invest in: a savings account paying

6

percent compounded annually, or a savings account paying

6

percent compounded daily? Why?

1.Which is greater: the future value interest factor (FVIF) for 10

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