interest Investments and loans base their interest calculations on one of two possible methods: the interest and the methods. Both methods apply three variables-the amount of principal, the interest rate, and the investment or deposit period-to the amount deposited or invested in order to compute the amount of interest. However, the two methods differ in their relationship between the variables. Assume that the variables I, N, and PV represent the interest rate, investment or deposit period, and present value of the amount deposited or invested, respectively. Which equation best represents the calculation of a future value (FV) using: Compound interest? OFV = PV/(1+1) O FV = PV x (1 +1) OFV = PV + (PV X I X N) Simple interest? FV = PV + (PV XI X N) FV = PV / (PVX I XN) FV = PV XIXN