Asked by April

In the future value annuity table at any interest rate for one year, why is the future value interest factor of this annuity equal to 1.00?

Answers

Answered by Reiny
the values in your tables are generated by the formula

FV = $1 ( (1+i)^n - 1)/i
if n = 1 , that becomes

FV = 1( 1+i)^1 - 1)/i
= 1( 1+i - 1)/i
= i/i
= 1
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