Which of the Following Equations Shows How to Determine the Future

question 77

Multiple Choice

Which of the following equations shows how to determine the future value (P₁) at the end of one year of a payment or deposit (P₀) made today?

• A) P₀ = P₁/1+r
• B) P₀ (1+r) = P₁
• C) P₀ = Pn/(1+r)ⁿ
• D) none of the above are correct

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