Resolved: Incorrect formula
There is a mistake in formula of PV on this video. It is given as PV = FV/PV*(1+r)^n, the PV in denominator is odd.
Hello Ruslan!
Thanks for reaching out!
That's right! There is an incorrect term in the denominator.
We will correct it asap.
Thanks for noticing!
Best,
The 365 Team
regarding the fv formula solution in the example we used the EAR formula as an alternative solution but the formula was used by power of two although it was quarterd ccompound period
Hello Ahmed!
Thanks for reaching out!
Acuatually, the EAR is annual rate, and already incorporates the quarterly compounding that you refer to. Since it's an annual rate of return you have to conpound by two (the number of years) in order to find the future value of the investment.
Hope this helps!
Best,
The 365 Team