What is the formula for the present value of a single sum at compound interest?
A) $ \frac{P V}{(1+i)^{n}} $
B) $ F V \times(1+i)^{n} $
C) $ F V \times \frac{1}{(1+i)^{n}} $
D) $ P V \times \frac{1}{(1+i)^{n}} $

Question

What is the formula for the present value of a single sum at compound interest? 
A) $ \frac{P V}{(1+i)^{n}} $
B) $ F V \times(1+i)^{n} $
C) $ F V \times \frac{1}{(1+i)^{n}} $
D) $ P V \times \frac{1}{(1+i)^{n}} $

Quizplus · Accepted Answer

The formula for the present value (PV) of a single future sum (FV) at compound interest is $ F V \times \frac{1}{(1+i)^{n}} $, where $i$ is the interest rate per period, and $n$ is the number of periods. This formula is used to determine the current value of a future amount of money given a specified rate of return.

What Is the Formula for the Present Value of a Single