The Correct Formula That Relates Present Value (PV) to Future $\mathrm { PV } = \mathrm { FV } ( 1 + i ) ^ { n }$

question 208

Multiple Choice

The correct formula that relates present value (PV) to future value (FV) , if interest rate is i percent per year over n years is

• A) \(\mathrm { PV } = \mathrm { FV } ( 1 + i ) ^ { n }\)
• B) \(\mathrm { FV } = \mathrm { PV } ( i) ^ { n }\)
• C) \(\mathrm { PV } = \mathrm { FV } _ { \mathrm { n } } / ( 1 + i ) ^ { n }\)
• D) \(\mathrm { FV } = \mathrm { PV } ( 1 + i ) ( n )\)