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Math

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In the future value annuity table at any interest rate for one year, why is the future value interest factor of this annuity equal to 1.00?

  • Math -

    the values in your tables are generated by the formula

    FV = $1 ( (1+i)^n - 1)/i
    if n = 1 , that becomes

    FV = 1( 1+i)^1 - 1)/i
    = 1( 1+i - 1)/i
    = i/i
    = 1

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