Final answer:
The correct formula for calculating the interest rate when given the present and future value is i = (FVn / PV)^(1/N) - 1, which applies the principles of compound interest.
Step-by-step explanation:
The correct formula for computing the interest rate on an investment when you have the present value (PV), the future value at the end of n periods (FVn), and the number of periods (N) is option d: i = (FVn / PV)1/N - 1.
This formula is based on the compound interest principle, which considers the interest earned on both the initial principal and the accumulated interest over previous periods. We can rearrange the compound interest formula PV(1+i)N = FV to solve for interest rate 'i' as shown. To isolate 'i', we divide both sides by PV, take the Nth root, and then subtract 1.