Consider the TVM equation: A decrease in the interest rate will decrease the future value,other things remaining equal.

Name: Consider the TVM equation: A decrease in the interest rate will decrease the future value,other things remaining equal.
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Quizplus · Accepted Answer

This statement is true according to the TVM formula. When the interest rate decreases, the compound interest earned on an investment will also decrease, leading to a smaller future value.

Consider the TVM Equation: a Decrease in the Interest Rate