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Interest and Discount Factors

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Multiple Choice

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)?

  1. FV = PV * (1 + r)^n
  2. FV = PV * (1 - r)^n
  3. FV = PV * (1 + r/n)^n
  4. FV = PV * (1 - r/n)^n
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