Ask Question
17 July, 06:02

Paul Davis wants to deposit a lump sum of money today for a vacation that he plans to take to Asia after he graduates from Graduate School. Which formula should he use to determine the amount of money he will have available for his vacation?

+3
Answers (1)
  1. 17 July, 06:05
    0
    Options:A) Present value of a single amount

    B) Future value of a single amount

    C) Simple interest

    D) Present value of an annuity

    E) Future value of an annuity

    Answer:B) Future value of a single amount.

    Explanation: Future value of a single amount is an accounting concept used to describe how much a single lump sum of money deposited in a bank account would have grown up to after a given period of time. Future value of a single amount can be obtained by

    multiplying the principal (P) * the interest rate (I) * time (t) The interest rate is expressed as a decimal.

    The FV = P (1 + rt).

    Future value of a single amount is usually used in calculating the total accrued amount of fixed deposits accounts, it is a single period investment.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Paul Davis wants to deposit a lump sum of money today for a vacation that he plans to take to Asia after he graduates from Graduate School. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers