To compute the present value of a future value,you must know the _________ and the _________.
A)interest rate;time period
B)interest rate;compounding interest
C)compounding interest;time period
D)None of these statements is true.

Question

Quizplus · Accepted Answer

To compute the present value of a future value, you need to know the interest rate (the rate at which the investment will grow or earn interest) and the time period (the length of time until the investment matures or is paid out). Compounding interest is not necessary to know for this calculation, although it may affect the total future value.

To Compute the Present Value of a Future Value,you Must