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Discuss the meaning of this mathematical expression and verify it using EXCEL FV4PV0=1+r4 i.e. a) Explain what is the meaning of the ratio FV4PV0 b)

Discuss the meaning of this mathematical expression and verify it using EXCEL FV4PV0=1+r4 i.e. a) Explain what is the meaning of the ratio FV4PV0 b) Explain what is the meaning of the term (1+r) and c) why the term (1+r) it is raised to the forth power i.e. it is multiplied to itself four times. d) Furthermore explain why there is a balance, i.e. the two terms are equal

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