The Future Value Interest Factor Is Calculated As

question 77

Multiple Choice

The future value interest factor is calculated as:

• A) (1 + r)t
• B) (1 + rt)
• C) (1 + r)(t)
• D) 1 + r - t
• E) (1 + r)(2)

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Definitions:

Purchases Discounts

An allowance given by the seller to the buyer for early payment or for buying in large quantities.

Net Purchases

The total cost of goods bought for resale, after subtracting returns, allowances, and discounts.

Merchandise Inventory

Goods that a company holds for the purpose of selling to customers.