Which of the Following Is the Formula for Compound Value

question 58

Multiple Choice

Which of the following is the formula for compound value?

• A)FV_n = P(1 + i)ⁿ
• B)FV_n = (1 + i)/P
• C)FV_n = P/(1 + i)ⁿ
• D)FV_n = P(1 + i)^-n

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Definitions:

U.S. Companies

Businesses that are registered, operate, or are headquartered in the United States.

Business Failure

The cessation of operations and the closing of a business due to its inability to make a profit or cover its expenses, leading to financial losses for owners and investors.

Business Termination

When a business ceases operation for any reason.

Manufacturing Industry

The sector of the economy that is involved in the production of goods using raw materials and machinery.