The principal amount and the interest rate are the only factors needed to calculate the time value of money.

Question

Quizplus · Accepted Answer

The time period over which the interest is being earned or paid is also needed to calculate the time value of money. The formula typically used for this calculation is: FV = PV x (1 + r)n, where FV is the future value, PV is the present value, r is the interest rate, and n is the number of time periods.

The Principal Amount and the Interest Rate Are the Only