The basic future and present value equations contain four variables. Which one of the following is not included?
A) present value (PV)
B) future value (FV)
C) interest rate (r)
D) inflation rate (I)
E) number of periods (n)

Question

Quizplus · Accepted Answer

The basic future and present value equations only include variables related to time (number of periods), cash flows (present value and future value), and the discount rate (interest rate). The inflation rate is not included in these basic equations.

The Basic Future and Present Value Equations Contain Four Variables