Start now if you want your child to become a tennis multi-millionaire and keep you in old age, though there are much better reasons to get them playing, says Andrew Baker. Smashing fun: four-year-old Lucy works on her double-handed forehand.
38) What is the relationship between present value and future value interest factors? <br />A. The present value and future value factors are equal to each other.<br />B. The present value factor is the exponent of the future value factor.<br />C. The future value factor is the exponent of the present value factor.<br />D. The factors are reciprocals of each other.<br />E. There is no relationship between these two factors.</p>.
The difference between the present value of the future cash flows from an investment and the amount of investment. Present value of the expected cash flows is computed by discounting them at the required rate of return. For example, an investment of $1,000 today at 10 percent will yield $1,100 at the end of the year; therefore, the present value of $1,100 at the desired rate of return (10 percent) is $1,000.