Finding Present Value and Future Value (5.4.2) Flashcards

1
Q

• The value of an investment over time is described by an exponential equation.

A

• The value of an investment over time is described by an exponential equation.

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2
Q

• The compound interest formula: A = P[1+(r/m)]^mt.

A

• The compound interest formula: A = P[1+(r/m)]^mt.

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3
Q

• You can use the compound interest formula to find the present and future values of investments.

A

• You can use the compound interest formula to find the present and future values of investments.

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