When computing the number of deposits needed to accumulate to a future sum, it will take longer the higher the interest rate, holding the future value and deposit size constant.

Name: When computing the number of deposits needed to accumulate to a future sum, it will take longer the higher the interest rate, holding the future value and deposit size constant.
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

A higher interest rate means that each deposit grows more quickly, so fewer deposits are needed to reach the same future value.

When Computing the Number of Deposits Needed to Accumulate to a Future