answersLogoWhite

0

The present value factor is the exponent of the future value factor. this is the relationship between Present Value and Future Value.

User Avatar

Wiki User

13y ago

What else can I help you with?

Continue Learning about Basic Math

If the interest rate is 0 the future value interest factor equals what?

If the interest rate is 0, the future value interest factor equals 1. This is because, without interest, any amount of money will remain the same over time; thus, the future value of any present amount will be equal to itself. Therefore, regardless of the time period, the future value remains unchanged when the interest rate is 0%.


Why is a number to a negative exponent a fraction?

Because a number to the exponent 0 = 1 and any lesser exponent decreases the value.


When a base of an exponential expression is apositive real number and exponent is an integer?

Then, if the exponent is a positive integer, the value is 1 multiplied by the base repeatedly, exponent times. If the exponent is a negative integer then it is the reciprocal of the above value.In either case, it is NOT the base multiplied by itself an exponent number of times.


How turn a negative exponent into a decimal?

To convert a negative exponent into a decimal, first rewrite the expression by taking the reciprocal of the base raised to the positive exponent. For example, ( a^{-n} ) can be rewritten as ( \frac{1}{a^n} ). Then, calculate the value of ( a^n ) and take its reciprocal to find the decimal representation. This process effectively transforms the negative exponent into a positive one in the denominator.


Basic Financial Calculator?

Basic Financial Calculator This basic financial calculator works just like a pocket financial calculator. In addition to the normal calculator arithmetic it can also calculate present value, future value, payments or number of periods.

Related Questions

What is the relationship between the present value factor and annuity present value factor?

Present value annuity factor calculates the current value of future cash flows. The present value factor is used to describe only the current cash flows.


What is the relationship between present value factor and annuity present value factor?

Present value annuity factor calculates the current value of future cash flows. The present value factor is used to describe only the current cash flows.


What is the difference between present value interest factors versus future value interest factor?

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 oneBut, 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.


How is the future value related to the present value of a single sum?

The present value is the reciprocal of the future value.


How do you compute present and future value of a cash flow stream?

Future Value = Value (1 + t)^n Present Value = Future Value / (1+t)^-n


How do you define the value of value?

I need a answer how do you know when to use future value or present value and future value of a annuity and present value of annuity Please help


What effect do interest rates have on the calculation of future and present value How does the length of time affect future and present value How do these two factors correlate?

What effect do interest rates have on the calculation of future and present value, how does the length of time affect future and present value, how do these two factors correlate.


How do you find future value of share if you have present of it?

F = Future value P = Present Value i = Intrest Rate n = no. of years Therefore, the formula for future value of present amount :- F= P (1+i)n


How is present value annuity factor calculated?

The present value annuity formula is used to simplify the calculation of the current value of an annuity. A table is used where you find the actual dollar amount of the annuity and then this amount is multiplied by a value to get the future value of that same annuity.


Present value of a future amount?

the current dollar value of a future amount


The present value of future cash flows has what relationship to interest rate?

The present value of future cash flows is inversely related to the interest rate.


Jean will receive 8500 per year for 15 years if a 7 percent interest rate is applied what is the current value of the future payments?

If based on the present value of annuities Taking a factor of 9.1 Present value of the 15 years annuities is approx $76,506