Which of the Following Equations Is Used to Calculate the Future

question 47

Multiple Choice

Which of the following equations is used to calculate the future value of an investment?

• A) FV_n = PV ÷ (1 + i)ⁿ
• B) FV_n = PV × (1 + i)ⁿ
• C) FV_n = (1 + i)ⁿ + PV
• D) FV_n = (1 + i)ⁿ ÷ PV

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Definitions:

Dependent Variable

The outcome factor whose variations are studied to determine the effect of one or more independent variables.

Independent Variable

A variable presumed to influence or determine the value of another variable, often called the dependent variable.

Coefficient Of Correlation

A statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables, ranging from -1 to 1.

Dependent Variable

In an experiment or statistical model, the variable that is being tested and measured, often influenced by the independent variable(s).