An increase in future value can be caused by an increase in the
A)annual interest rate.
B)number of compounding periods.
C)original amount invested.
D)both A and B.

Question

Quizplus · Accepted Answer

An increase in either the annual interest rate or the number of compounding periods will result in a higher future value. Therefore, both option A and B are correct. Option C may result in a higher future value if the investment amount is significant, but it is not necessarily the key factor driving the increase in future value.

An Increase in Future Value Can Be Caused by an Increase