Which of the following equations is used to calculate the future value of an investment when interest is compounded m times a year? A) FV_n = PV ÷ (1 + i)^m×n B) FV_n = PV × (1 + i/m)^m×n C) FV_n = (1 + i)^m×n+ PV D) FV_n = (1 + i)^m×n÷ PV

Question

Quizplus · Accepted Answer

The correct formula for calculating the future value of an investment with compounded interest m times a year is FV = PV x (1 + i/m)^(m*n), where FV is the future value, PV is the present value, i is the interest rate, m is the number of times interest is compounded per year, and n is the number of years. This formula is equivalent to option B.

Which of the Following Equations Is Used to Calculate the Future