Which of the following equations is consistent with the relationship between the future value (FV)and the present value (PV)given a discount rate (R)and the number (N)of compounding periods? A)= (1 + R)^N B)= (1 + R)^N C)= (1 + N)^R D)= (1 + N)^R

Question

Quizplus · Accepted Answer

The formula for future value given present value, discount rate, and number of compounding periods is FV = PV(1 + R)^N. The equation in choice B matches this formula, while the other choices have incorrect variables such as using (1+N) instead of (1+R).

Which of the Following Equations Is Consistent with the Relationship