Business, 25.09.2020 01:01 makaylahunt

Investments and loans base their interest calculations on one of two possible methods: the the interest and interest methods. Both methods apply three variables--the amount of principal, the interest rate, and the investment or deposit period-to the amount deposited or invested in order compute the amount of to interest. However, the two methods differ in their relationship between the variables. Assume that the variables I, N, and Pv represent the interest rate, investment or deposit period, and present value of the amount deposited or invested respectively. Which equation best represents the calculation of a future value (FV) using:Compound Interest?FV=PVx(1+I)N FV=PV+(PVxIxN)
FV=PV/(1+I)NSimple Interest?FV=PV/(1xIxN)
FV=PVxIxN
FV=PV+(PVxIxN)

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Investments and loans base their interest calculations on one of two possible methods: the the inter...

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