Which of the Following Is the Correct Formula for Calculating $\mathrm{FV}=\mathrm{PV} \times(1+\mathrm{r})^{\mathbf{n}}$

question 44

Multiple Choice

Which of the following is the correct formula for calculating the future value?

• A)FV=
• B) \( \mathrm{FV}=\mathrm{PV} \times(1+\mathrm{r})^{\mathbf{n}} \)
• C) \( \mathrm{PV}=\mathrm{FV} \times(1+\mathrm{r})^{\mathrm{n}} \)
• D) PV=

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Definitions:

Substitution Effect

A change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another.

Income Effect

The alteration in a person's or an economy's earnings and its effect on the amount of a good or service they want to purchase.

Labor Supply Curve

Represents the relationship between the wage rate and the quantity of labor that workers are willing to supply, typically showing that higher wages attract a larger labor supply.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute away from more expensive items toward cheaper ones.