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:

Parallel Forms

A method of reliability assessment in psychometrics where two different versions of a test are used to measure the same construct, to check for consistency.

Interrater

Relates to the degree of agreement among independent observers or raters evaluating the same phenomenon.

Predictive Validity

The extent to which a score or measurement can accurately predict future performance or behavior.

Concurrent Validity

A measure of how well a particular test correlates with a previously validated measure.