Small changes in the interest rate can have a dramatic impact on future values.

Question

Quizplus · Accepted Answer

Small changes in the interest rate can compound over time and result in significant differences in future values of investments, loans, and other financial products. For example, a 1% difference in the interest rate of a 30-year mortgage can result in a difference of thousands of dollars in the total amount paid over the life of the loan. Similarly, a small increase in the interest rate on a savings account can result in significantly higher earnings over time.

Small Changes in the Interest Rate Can Have a Dramatic