. The terminal value of an investment for T years at an annually compounded rate, r is given by VT = P[1+ (1+r)+(1+r)²+...+(1+r)T1]. What is the value of VT in terms of P, r and T. www

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter2: Equations And Inequalities
Section2.7: More On Inequalities
Problem 44E
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17. The terminal value of an investment for T years at an
annually compounded rate, r is given by
VT = P[1 + (1+r)+(1+r)?+...+(1+r)T1].
What is the value of VT in terms of P, r and T.
P((1+r)T-1)
В.
(1+Pr)T–1)
А.
r
r - 1
(P(1+r)™-1–1)
P((1+r)"-1)
D.
В.
r – 1
r - 1
Ο Α. Α
В. В
ОС. С
D. D
Transcribed Image Text:17. The terminal value of an investment for T years at an annually compounded rate, r is given by VT = P[1 + (1+r)+(1+r)?+...+(1+r)T1]. What is the value of VT in terms of P, r and T. P((1+r)T-1) В. (1+Pr)T–1) А. r r - 1 (P(1+r)™-1–1) P((1+r)"-1) D. В. r – 1 r - 1 Ο Α. Α В. В ОС. С D. D
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