Which of the following is the formula for present value?
A) FVn = P(1 + i)n
B) FVn = (1 + i)/P
C) FVn = P/(1 + i)n
D) FVn = P(1 + i)-n

Question

Quizplus · Accepted Answer

The formula for present value is P = FVn/(1+i)^n, which can also be expressed as FVn = P(1+i)^n. By rearranging this equation, we get P = FVn/(1+i)^n, which is the formula for present value. Therefore, the correct choice is C, FVn = P/(1 + i)^n.

Which of the Following Is the Formula for Present Value