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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:

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