A single amount is invested and increases over time as interest is compounded. If the number of periods is known, the interest rate can be approximately determined by ________.
A) dividing the present value by the future value and looking for the quotient in the future value of $1 table
B) multiplying the present value by the future value and looking for the product in the present value of $1 table
C) dividing the future value by the present value and looking for the quotient in the future value of $1 table
D) dividing the future value by the present value and looking for the quotient in the present value of $1 table

Question

Quizplus · Accepted Answer

The interest rate can be approximately determined by dividing the future value by the present value and looking for the quotient in the future value of $1 table, which shows how much $1 grows over time at various interest rates.

A Single Amount Is Invested and Increases Over Time as Interest