QuestionMay 31, 2025

We can rearrange the future value of a single deposit formula to solve for present value. True False

We can rearrange the future value of a single deposit formula to solve for present value. True False
We can rearrange the future value of a single deposit formula to solve for present value.
True
False

Solution
4.5(300 votes)

Answer

True Explanation 1. Identify the formula for future value The future value of a single deposit is given by FV = PV \times (1 + r)^n, where FV is the future value, PV is the present value, r is the interest rate, and n is the number of periods. 2. Rearrange the formula to solve for present value Rearranging gives PV = \frac{FV}{(1 + r)^n}.

Explanation

1. Identify the formula for future value<br /> The future value of a single deposit is given by $FV = PV \times (1 + r)^n$, where $FV$ is the future value, $PV$ is the present value, $r$ is the interest rate, and $n$ is the number of periods.<br />2. Rearrange the formula to solve for present value<br /> Rearranging gives $PV = \frac{FV}{(1 + r)^n}$.
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