fill in the blank question\n\npresent value table factors are numbers than 1.
fill in the blank question\n\npresent value table factors are numbers than 1.
Answer
Explanation:
Step1: Identify the Present Value formula
The Present Value ($PV$) of a future amount ($FV$) is calculated using the formula: $$PV = FV \times \frac{1}{(1 + r)^n}$$ where $r$ is the interest rate and $n$ is the number of periods.
Step2: Analyze the Present Value factor
The Present Value table factor is the term $\frac{1}{(1 + r)^n}$. Since interest rates ($r$) are positive values in finance, the denominator $(1 + r)^n$ will always be greater than $1$ for any $n \geq 1$.
Step3: Determine the factor's magnitude
When the numerator is $1$ and the denominator is greater than $1$, the resulting quotient is always a positive value less than $1$. This reflects the principle that a dollar received in the future is worth less than a dollar today.
Answer:
less