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

question 21

Short Answer

The future worth of a present value is modeled using the following function: $$F ( n ) = P ( 1 + i ) ^ { n }$$ where $F =$ future worth $( \$ )$
$$\begin{array} { l } P = \text { present value } ( \$ ) \\i = \text { interest rate } ( \% ) \\n = \text { length of investment (years) }\end{array}$$
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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Definitions:

Purchases

Items bought or acquired by a company for various purposes, primarily for resale in the course of business.

Cost Of Goods Available

The total cost of inventory available for sale during a period, calculated as beginning inventory plus purchases minus ending inventory.

Periodic Inventory System

An accounting method where inventory is physically counted at specific intervals to determine the level of inventory and cost of goods sold.

Perpetual Inventory System

An inventory accounting system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.