The value of an investment at the end of the period over which interest is compounded is called the:
A) time value of money.
B) present value of an investment.
C) future value of an investment.
D) None of the above.

Question

Quizplus · Accepted Answer

The future value of an investment takes into account the compound interest earned over a period of time and represents the total value of the investment at the end of the period. The time value of money refers to the concept that money today is worth more than money in the future due to the potential earning power of invested funds. The present value of an investment represents the current value of an investment, taking into account the time value of money and any expected future cash flows. Therefore, option C is the correct answer.

The Value of an Investment at the End of the Period