The future value of a dollar
1) increases with lower interest rates
2) increases with higher interest rates
3) increases with longer periods of time
4) decreases with longer periods of time
A)1 and 3
B)1 and 4
C)2 and 3
D)2 and 4

Question

​The future value of a dollar
1) increases with lower interest rates
2) increases with higher interest rates
3) increases with longer periods of time
4) decreases with longer periods of time
A)​1 and 3
B)​1 and 4
C)​2 and 3
D)​2 and 4

Quizplus · Accepted Answer

The future value of a dollar increases with higher interest rates because the amount of interest earned is greater. It also increases with longer periods of time, as there is more time for interest to accumulate.

​The Future Value of a Dollar

The Future Value of a Dollar