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What is the difference between present value interest factors versus future value interest factor?
Wiki User
∙ 13y ago
The Present Value Interest Factor PVIF is used to find the present value of future payments, by discounting them at some specific rate. It decreases the amount. It is always less than one
But, the Future Value Interest Factor FVIF is used to find the future value of present amounts. It increases the present amount. It is always greater than one.
Wiki User
∙ 13y ago
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