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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