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What Is the Relationship Between Present Value and Future Value

Question 23

Multiple Choice

What is the relationship between present value and future value interest factors?


A) The present value and future value factors are equal to each other.
B) The present value factor is the exponent of the future value factor.
C) The future value factor is the exponent of the present value factor.
D) The factors are reciprocals of each other.
E) There is no relationship between these two factors.

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