Which of the Following Equations Is Used to Compute the Future

question 34

Multiple Choice

Which of the following equations is used to compute the future value for continuous compounding?

• A) FV_∞ = PV × e ^{i × n}
• B) FV_∞ = PV ÷ e ^{i × n}
• C) FV_∞ = eⁱ ÷ PV
• D) FV_∞ = eⁱ × PV

---

Definitions:

Private Ownership

The legal possession of assets, resources, or property by individuals or corporations rather than by the state or public entities.

Consumer Sovereignty

The concept that consumers' preferences and choices dictate the production and consumption of goods and services in an economy.

Dollar Votes

A term used in economics to describe how consumers show their preferences and exert influence in the market by how they spend their money.

Dollar Votes

The concept that consumers "vote" for the products they prefer through the dollars they spend.