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What percentage and amount of years will produce the lowest present value interest factor? 8 percent...

What percentage and amount of years will produce the lowest present value interest factor?

8 percent interest for 5 years

6 percent interest for 5 years

6 percent interest for 10 years

8 percent interest for 10 years

Solutions

Expert Solution

As per PVIF table:

present value interest factors for the given:

8% interest for 5 Years = 0.6806

6% interest for 5years= 0.7473

6% interest for 10 years = 0.5584

8% interest for 10 years = 0.4632

Answer; 8% interest for 10 years will produce lowest present value interest factor

jeff jeffy answered 3 years ago
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