Consider the TVM equation: the variable "r" may be defined as the discount rate or the growth rate depending upon how the equation is being used.

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The variable "r" in the TVM equation can be defined as the discount rate or the growth rate depending on how the equation is being used. For example, when calculating the present value of a future cash flow, "r" would represent the discount rate. However, when calculating the future value of an investment, "r" would represent the growth rate.

Consider the TVM Equation: the Variable "R" May Be Defined