The Formula for the Future Value of a Single Amount $\frac { 1 } { ( 1 + i ) ^ { n } }$

question 100

Multiple Choice

The formula for the future value of a single amount at compound interest is

• A) \(\frac { 1 } { ( 1 + i ) ^ { n } }\)
• B) PV x (1 + i)ⁿ
• C) \(\frac { ( 1 + i ) ^ { n - 1 } } { i }\)

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Definitions:

Capital Account Balance

A measure of the financial value of a nation's assets minus liabilities in the capital account, reflecting changes like foreign investment.

Partnership Capital

The total funds contributed by the partners of a partnership firm, which are used in the business and represented on the firm's balance sheet.

Income-sharing Ratio

The predetermined proportion used to distribute earnings or losses among business partners or shareholders according to their agreement.

Fair Value

The amount one would receive from selling an asset or the cost to transfer a liability during a systematic transaction among market participants on the date of valuation.