If you are calculating a positive future value (money being withdrawn from a bank, which is a positive cash flow), your formula requires a negative ____.

Question

Quizplus · Accepted Answer

In financial calculations, a positive future value indicates a cash inflow in the future, and to balance the equation, the present value (pv), payment (pmt), or both need to be considered as outflows, hence negative. This is because the formula accounts for the direction of cash flow, where outflows (investments or payments) are typically entered as negative values and inflows (returns, withdrawals) as positive values.

If You Are Calculating a Positive Future Value (Money Being