Year 12 Maths Standard 1 (2027)
Investment
Compound Interest - Present Value & Rate
ACCOUNT REQUIRED
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Question 1
199160
A future value \(FV\) is to be received in \(n\) periods, with a compound interest rate \(r\) per period. Which formula gives the present value \(PV\) that must be invested now?
\(PV=\dfrac{FV}{(1+r)^n}\)
\(PV=FV(1+r)^n\)
\(PV=\dfrac{FV}{1+rn}\)
\(PV=FV(1-r)^n\)
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