QuestionJuly 18, 2025

Which of the following is true? (Hint:Remember, money always grows!) PV should always equal FV. PV should always be larger than FV. PV should always be smaller than FV.

Which of the following is true? (Hint:Remember, money always grows!) PV should always equal FV. PV should always be larger than FV. PV should always be smaller than FV.
Which of the following is true? (Hint:Remember, money always grows!)
PV should always equal FV.
PV should always be larger than FV.
PV should always be smaller than FV.

Solution
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Answer

PV should always be smaller than FV. Explanation 1. Define PV and FV Present Value (PV) is the current value of money. Future Value (FV) is the value of money at a future date, considering interest or growth. 2. Apply Growth Concept Money grows over time due to interest or investment returns, meaning FV is typically larger than PV.

Explanation

1. Define PV and FV<br /> Present Value (PV) is the current value of money. Future Value (FV) is the value of money at a future date, considering interest or growth.<br />2. Apply Growth Concept<br /> Money grows over time due to interest or investment returns, meaning FV is typically larger than PV.
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