SOLUTION: Hello! I am reviewing future values for my Finance class and am completely befuddled on the logical progression of the time value of money formulas. It has been quite some time si

Algebra ->  Finance -> SOLUTION: Hello! I am reviewing future values for my Finance class and am completely befuddled on the logical progression of the time value of money formulas. It has been quite some time si      Log On


   

Question 100917: Hello! I am reviewing future values for my Finance class and am completely befuddled on the logical progression of the time value of money formulas. It has been quite some time since I have taken Algebra, and that is essentially why I can't figure this transformation out.
FV1 = PV + kPV
must transform into:
FV1 = PV(1+k)
I understand the basics cross-multiplying, but cannot for the life of me figure out how the former was transformed into the latter. Your assistance would be greatly appreciated!
Jonathan Pounds

Answer by scott8148(6628) About Me  (Show Source):
You can put this solution on YOUR website!
factoring PV from PV+kPV gives PV(1+k)

the reverse may be easier to see ... (PV)*(1+k)=((PV)*(1))+((PV)*(k))=PV+PVk