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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?
12 years ago

Answers

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
12 years ago

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