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The quantity (1+r)t is Select one: a. the future value interest factor. b. the present value...

The quantity (1+r)t is

Select one:

a. the future value interest factor.

b. the present value interest factor.

c. the discount factor.

d. the present value annuity factor.

e. both b and c.

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Answer #1

The answer is

A. The future value interest factor

Future value is equal to present value plus interest earned for the given time period

Hence, future value factor is represented by (1+f)^t

Which represents compounding

Present value factor is 1/(1+r)^t

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