In determining the interest factor (IF) for the present value of $1, one could use the reciprocal of the IF for the future value of $1 at the same rate and time period.

The interest factor for a future value (FV_IF) is equal to (1 + i)ⁿ.

TRUE

The formula PV = FV(1 + n)ⁱ will determine the present value of $1.

FALSE

In determining the interest factor (IF) for the present value of $1, one could use the reciprocal of the IF for the future value of $1 at the same rate and time period.
TRUE

To determine the current worth of 4 annual payments of $1,000 at 4%, one would refer to a table for the present value of $1.
FALSE

 As the interest rate increases, the interest factor (IF) for the present value of $1 increases.

FALSE

 The interest factor for the present value of a single amount is the inverse of the future value interest factor.

TRUE

The interest factor for the present value of a single sum is equal to (1 + i)/i.

FALSE

Higher interest rates (discount rates) reduce the present value of amounts to be received in the future.

TRUE

 In determining the future value of an annuity, the final payment is not compounded at all.

TRUE

The future value of an annuity assumes that the payments are received at the end of the year and that the last payment does not compound.

TRUE