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#reading-6-tvm

Question

A key assumption of the future value formula is that **[...]** .

Answer

interim interest earned is reinvested at the given interest rate (r)

Tags

#reading-6-tvm

Question

A key assumption of the future value formula is that **[...]** .

Answer

?

Tags

#reading-6-tvm

Question

A key assumption of the future value formula is that **[...]** .

Answer

interim interest earned is reinvested at the given interest rate (r)

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**subject 3. The Future Value and Present Value of a Single Cash Flow**

make a single investment today, its future value, received N years from now, is as follows: FV = future value at time n PV = present value r = interest rate per period N = number of years <span>A key assumption of the future value formula is that interim interest earned is reinvested at the given interest rate (r). This is known as compounding. In order to receive a single future cash flow N years from now, you must make an investment today in the following amount:

make a single investment today, its future value, received N years from now, is as follows: FV = future value at time n PV = present value r = interest rate per period N = number of years <span>A key assumption of the future value formula is that interim interest earned is reinvested at the given interest rate (r). This is known as compounding. In order to receive a single future cash flow N years from now, you must make an investment today in the following amount:

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
---|---|---|---|---|---|---|---|

repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

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