Which formulas) listed below represents) the time value of money equation?

Question

Quizplus · Accepted Answer

The time value of money equation is used to calculate the future value (FV) or present value (PV) of a sum of money. Both formulas B and D represent the time value of money equation with FV being the future value, PV being the present value, r being the interest rate, and n being the number of time periods. Formula B uses the parentheses to show that the interest rate is raised to the power of n before being added to 1, while formula D uses the parentheses to show that 1 plus the interest rate is raised to the power of n before being used as the denominator. Therefore, both formula B and D are correct representations of the time value of money equation.

Which Formulas) Listed Below Represents) the Time Value of Money