Asked by
Jersey Vanover - DCHS 2021
on Dec 05, 2024
Verified
The formula for the present value of a single sum at compound interest is
A) p(1 + i) n
B) f(1 + i) n
C) f[1/(1 + i) n]
D) p[1/(1 + i) n]
Present Value
The current worth of a future sum of money or stream of cash flows, given a specified rate of return.
Compound Interest
Interest that is computed on the original amount of a loan or deposit, incorporating all the interest accumulated from earlier periods.
- Estimate the present value of one-time amounts and annuities with diverse compounding rates.
Verified Answer
AK
Learning Objectives
- Estimate the present value of one-time amounts and annuities with diverse compounding rates.