r: Interest Rate in %

n: Investment for n Years

F: Value of Future Investment

P: Value of Present Investment

siembieda Apr 1, 2019

#3**+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.....

ElectricPavlov Apr 1, 2019