The Future Worth of a Present Value Is Modeled Using $F ( n ) = P ( 1 + i ) ^ { n }$

question 21

Multiple Choice

The future worth of a present value is modeled using the following function: $F ( n ) = P ( 1 + i ) ^ { n }$ where $\begin{array} { l } F = \text { future worth } ( \$ ) \\P = \text { present value } ( \$ ) \\i = \text { interest rate (\%) } \\n = \text { length of investment (years) }\end{array}$ Which type of mathematical model is used here to describe the gravitational force?

• A) Linear model
• B) Nonlinear model
• C) Exponential model
• D) Trigonometric model

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