The formula for the present value of a single sum at compound interest is A) $\frac { P V } { ( 1 + i ) ^ { n } }$ B) FV x (1 + i)ⁿ C) FV x $\frac { 1 } { ( 1 + i ) ^ { n } }$ D) PV x $\frac { 1 } { ( 1 + i ) ^ { n } }$

Question

Quizplus · Accepted Answer

The present value (PV) of a future sum (FV) at compound interest is calculated using the formula: PV = FV x $\frac { 1 } { ( 1 + i ) ^ { n } }$, where i is the interest rate and n is the number of periods.

The Formula for the Present Value of a Single Sum PV(1+i)n\frac { P V } { ( 1 + i ) ^ { n } }(1+i)nPV​

The Formula for the Present Value of a Single Sum $\frac { P V } { ( 1 + i ) ^ { n } }$