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Commerce · Q12

Financial Management

Graduate and Post Graduate · Commerce · question 12

Q12

Future value interest factor takes ____________.

A.
Compounding rate
Answer
B.
Discounting rate
C.
Inflation rate
D.
Deflation rate

Answer: Option A

Solution

Answer: Option A
Solution:
Future value interest factor takes Compounding rate. Future value (FV) is the value of a current asset at a specified date in the future based on an assumed rate of growth.