In the formula FV = PV × (1 + r),what does r denote?
A)The opportunity cost
B)The hurdle rate
C)The discount rate
D)All of the above

Question

Quizplus · Accepted Answer

In the formula FV = PV × (1 + r), "r" denotes the rate of return, which can be interpreted as the opportunity cost, the hurdle rate, or the discount rate, depending on the context in which the formula is used. These terms are different ways to describe the expected rate of return on an investment or the required rate of return to make an investment worthwhile.

In the Formula FV = PV × (1 + R),what