MANAGEMENT

Detailed explanation-1: -In its most basic form, the formula for future value (FV) is FV= PV*(1+i)^n, where “PV” equals the present value, “i” represents the interest rate and “n” represents the number of time periods.

Detailed explanation-2: -Net profit is gross profit minus operating expenses and taxes. You can also think of it as total income minus all expenses.

Detailed explanation-3: -A related account is Insurance Expense, which appears on the income statement and shown on balance sheet as asset.