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Interest and Discount Factors
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What is the formula for calculating the future value (FV) of a present value (PV) at a given interest rate (r) for a specified number of periods (n)?
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A
FV = PV * (1 + r)^n
💡 Explanation:
The future value (FV) is calculated by multiplying the present value (PV) by the factor (1 + r)^n, where r is the interest rate and n is the number of periods.