If P = principal, i = interest, and N = number of years in the future, the correct formula to calculate future value is
A) P(1 + i)N,
B) P / (1 + i)N,
C) (P × i)N,
D) P(N)i.

Question

Quizplus · Accepted Answer

The correct formula to calculate the future value of an investment is A) P(1 + i)N, which accounts for the principal amount, the interest rate, and the number of years the money is invested or borrowed for.

If P = Principal, I = Interest, and N =