Which of the following formulas is CORRECT for finding the present value of an investment? A)FV = $\frac { \text { PV } } { ( 1 + r ) ^ { n } }$ B)PV = FV × (1 + r)ⁿ C)PV = FVⁿ × (1 + r) D)PV = FV × $\frac { 1 } { ( 1 + r ) ^ { n } }$

Question

Quizplus · Accepted Answer

The correct formula for finding the present value (PV) of an investment is PV = FV × $\frac{1}{(1 + r)^n}$, where FV is the future value, r is the interest rate per period, and n is the number of periods. This formula discounts the future value back to the present value.

Which of the Following Formulas Is CORRECT for Finding the Present