The Formula for the Future Value Interest Factor of an Annuity

question 13

True/False

The formula for the Future Value Interest Factor of an Annuity (FVIFA)is $\frac { ( 1 + r ) ^ { n } - 1 } { r }$ .

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Definitions:

Government Budget Deficit

An economic condition occurring when government expenditures exceed its revenue in a fiscal period.

Interest Rate

The percentage charged or earned on a principal sum of money or an investment over a specified period of time.

Net Capital Outflow

The difference between the domestic purchases of foreign assets and the foreign purchases of domestic assets.

Exchange Rate

The rate at which one currency can be exchanged for another.