MANAGEMENT

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BUISENESS MANAGEMENT

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Amount / (1+r)n is the formula for calculating ____
A
Present Value
B
Future Value
C
Current Value
D
Earned Value
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.

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