Which of the following would increase the future value of an amount?
A)An increase in the interest rate
B)An increase in the amount
C)An increase in the time until future value is to be received
D)a and b
E)All of the above

Question

Quizplus · Accepted Answer

All of the factors listed - an increase in the interest rate, an increase in the amount, and an increase in the time until the future value is to be received - would increase the future value of an amount. Higher interest rates lead to more interest earned, a larger initial amount results in a larger base to apply the interest rate to, and a longer time period allows for more interest compounding periods.

Which of the Following Would Increase the Future Value of an Amount