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.
2
Q
• The compound interest formula: A = P[1+(r/m)]^mt.
A
• The compound interest formula: A = P[1+(r/m)]^mt.
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.