Assuming a one year investment, the formulation for arriving at return is either FV 1 = PV + kPV or FV 1 = PV(1+k).

Question

Assuming a one year investment, the formulation for arriving at return is either FV 1  = PV + kPV or FV 1  = PV(1+k).

Janesha Walker · Accepted Answer

Final Answer : True, Explanation :  Both formulas are correct for calculating returns on a one year investment, with the first formula being a slightly different way of expressing the second formula. FV represents the future value of the investment after one year, PV represents the initial investment amount, and k represents the rate of return.

Assuming a one year investment, the formulation for arriving at return is either FV₁ = PV + kPV or FV₁ = PV(1+k).

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Related questions

Assuming a one year investment, the formulation for arriving at return is either FV1 = PV + kPV or FV1 = PV(1+k).

Definitions

Learning Objectives

Learning Objectives

Related questions

Assuming a one year investment, the formulation for arriving at return is either FV₁ = PV + kPV or FV₁ = PV(1+k).