Question

In the formula FV=P(1+r)n, what is the n or period if the term is 10 years compounded yearly at 12% per annum?

10 b) 40 c) 120 d) 12

Answer 1

a 10

Step-by-step explanation:

The formula to compute the future value is shown below

Future value = Present value × (1 + rate of interest)^number of years

where,

The Rate of interest is 10%

And, the number of years or term is 10 years

Therefore as per the given situation, the correct option is a.

hence, the same is to be considered