Which of the following will decrease the future value of a lump sum investment made today assuming that all interest is reinvested? Assume the interest rate is a positive value.
I.Increase in the interest rate
II.Decrease in the lump sum amount
III.Increase in the investment time period
IV.Decrease in the investment time period
A) I and III only
B) I and IV only
C) I, II, and III only
D) II and III only
E) II and IV only
Correct Answer:
Verified
Q5: Given an interest rate of zero percent,
Q9: Sue needs to invest $3,626 today in
Q10: By definition, a bank that pays simple
Q10: Which one of the following will increase
Q11: Sam wants to invest $5,000 for 5
Q12: Sara is investing $1,000 today.Which one of
Q15: Jamie earned $180 in interest on her
Q16: Tom earned $120 in interest on his
Q18: Jeff deposits $3,000 into an account which
Q19: Which one of the following is the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents