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avatar+106 

r: Interest Rate in %

n: Investment for n Years

F: Value of Future Investment

P: Value of Present Investment

 Apr 1, 2019
 #1
avatar+106 
0

I don't understand what this is for.

 Apr 1, 2019
 #2
avatar+106 
0

rnfp!!!!!!! it so confusing.

 Apr 1, 2019
 #3
avatar+18280 
+1

It is the definition of terms in a financial equation like     FV = PV (1+r/100)^n   

        If you have a present value (initial deposit) of $50   and and  annual interest (r) of 6 percent compounded annually for 7 years(n), it would look like this:

FV = 50 (1+6/100)^7

FV =$ 75.18       Would be your Future value after 7 years

 

There are SCADS of other financial equations that use these terms in various ways.....

 Apr 1, 2019
 #4
avatar+705 
-2

Well Electric Pavlo Beat to it 

Nickolas  Apr 1, 2019
 #5
avatar+106 
0

ok thank you

 Apr 1, 2019
 #6
avatar+106 
0

no, it good this is the one I what.

 Apr 1, 2019
 #7
avatar+106 
0

so I do FV = 50 (1+6/100)^7 then what 

 Apr 1, 2019
 #8
avatar+106 
0

steps for the rate.

 Apr 1, 2019

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