Which of the Following Is the Correct Expression for Calculating

question 37

Multiple Choice

Which of the following is the correct expression for calculating the future value of an investment? (r represents the interest rate and n represents the length of time)

• A)Future value = Present value × (1 + r)ⁿ
• B)Future value = Present value + (1 + r)ⁿ
• C)Future value = Present value - (1 + r)ⁿ
• D)Future value = Present value / (1 + r)ⁿ
• E)Future value = Present value / [(1 + r) × n]