Question: So, does this make sense? We've rearranged the future value equation to solve for the present value. Also, notice that the present value interest factor

So, does this make sense? We've rearranged the future value equation to solve for the present value. Also, notice that the present value interest factor is theinverse of the future value interest factor. This means that you don't necessarily need two different interest factor tables for the single cash flow; you can make do using either simply the present value table or the future value tableso long as you use it correctly

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!