What Is the Relationship Between Present Value and Future Value

question 23

Multiple Choice

What is the relationship between present value and future value interest factors?

• A)The present value and future value factors are equal to each other.
• B)The present value factor is the exponent of the future value factor.
• C)The future value factor is the exponent of the present value factor.
• D)The factors are reciprocals of each other.
• E)There is no relationship between these two factors.

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Definitions:

Institutional Provider

A healthcare facility such as a hospital, clinic, nursing home, or any organization that delivers medical care services.

CMS-1450

A form used in the healthcare industry for hospital providers to bill Medicare and Medicaid programs and some private insurers.

Electronic Data Interchange (EDI) Transactions

The electronic exchange of business information in a standardized format, often used in healthcare for billing and record-keeping.

Paid Sooner

A situation where payments or financial obligations are settled or fulfilled ahead of the original schedule or due date.