In the formula FV=P(1 + r)t discussed in the text, the term FV represents:
A) The principal value of a loan
B) The annual rate of return to the lender of funds
C) The combined total of principal plus accumulated interest
D) The length, period or term of a loan
E) None of the above

Question

Quizplus · Accepted Answer

FV stands for Future Value, which is the amount of money an investment will grow to over some period of time at a given interest rate, representing the principal plus the accumulated interest.

In the Formula FV=P(1 + R)t Discussed in the Text