Solution-The determination of the value of an investment

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The determination of the value of an investment depends on knowing at least three of the following four variables:

(a)the present value (PV), future value (FV), interest rate (I), and term, (N, for number of periods).

(b)the present value (PV), prime rate (P), inflation rate (IR), and term, (N, for number of periods).

(c)the present value (PV), future value (FV), inflation rate (IR), and time of the year (T).

(d)the past investment (PI), future investment (FI), inflation rate (IR), and term (Y, number of years).

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