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One of the most elementary time value of money formulas appears below. FV=PV(1 + r) t Explain this equation so that a non-accountant can understand

One of the most elementary time value of money formulas appears below.

FV=PV(1 + r)^t

Explain this equation so that a non-accountant can understand what is happening. Include in your explanation, an example covering more than one period.

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