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In the factor notation \( (F/P, i, n) \), the quantity sought is

  • A.F, given P
  • B.P, given F
  • C.the interest rate i
  • D.the number of periods n

Answer: A

Correct answer: F, given P

The notation reads as a fraction: the quantity before the slash is what is being found and the one after it is what is known. So \( (F/P, i, n) \) finds a future sum from a present one, and multiplying P by it gives F. Reading the pair the other way round is the commonest error in using the tables.

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