When solving for the future value of an amount deposited now, which one of the following factors would not be an inputpart of the calculation?
A)present value amount
B)1 plus the interest rate
C)1 divided by the sum of 1 plus the interest rate
D)number of periods to compound over

Question

Quizplus · Accepted Answer

The calculation for the future value of an amount deposited now involves the present value amount, the interest rate, and the number of periods to compound over. The formula typically involves multiplying the present value by (1 + interest rate)^number of periods. The factor in C, "1 divided by the sum of 1 plus the interest rate," is not a part of this calculation.

When Solving for the Future Value of an Amount Deposited