Match the  LIST-I with  LIST-II

LIST-I Concept	LIST-II Formula
A. Present Value	I. Cash flow x (1+r)⁴
B. Future Value	II. Cash flow/ (1+r)⁴
C. Future Value of Annuity	III. R (PVIFi,n)
D. Present Value of Annuity	IV. R (FVIFAi,n)

Choose the  correct answer from the options given below:

Correct option is A

Match between the concepts and their formulas based on time value of money principles:
· A. Present Value: This represents the current worth of a future sum of money. To find the present value, you discount the future cash flow back to the present using an interest rate (r) and the number of periods (n). The formula for a single future cash flow (assuming 4 periods for the example) is II. Cash flow / (1+r)⁴.
· B. Future Value: This represents the value that a present sum of money will grow into over time, given an interest rate (r) and a number of periods (n). To find the future value, you compound the present cash flow. The formula for a single present cash flow (assuming 4 periods for the example) is I. Cash flow x (1+r)⁴.
· C. Future Value of Annuity: An annuity is a series of equal payments made at regular intervals. The future value of an annuity is the accumulated sum of these payments at a future date, considering compound interest. It is calculated by multiplying the regular payment (R) by the Future Value Interest Factor of an Annuity (FVIFA). Thus, it matches with IV. R (FVIFAi,n).
· D. Present Value of Annuity: This is the current value of a series of equal future payments, discounted back to the present. It is calculated by multiplying the regular payment (R) by the Present Value Interest Factor of an Annuity (PVIFA). Thus, it matches with III. R (PVIFi,n). 
Based on these matches, the correct option is: A-II, B-I, C-IV, D-III