BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Amount / (1+r)n is the formula for calculating ____
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Present Value
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Future Value
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Current Value
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Earned Value
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Explanation:
Detailed explanation-1: -PV = Present value. FV = Future value. r = Rate of interest (percentage รท 100) n = Number of times the amount is compounding.
Detailed explanation-2: -Present Value (PV) = FV / (1 + r) ^ n FV = Future Value. r = Rate of Return. n = Number of Periods.
Detailed explanation-3: -The present value of future cash flow is equal to that future cash flow divided by one plus the interest rate to the nth power.
There is 1 question to complete.