The difference between the present value and future value depends on the rate of interest and the length of time that interest accumulates.

Question

Quizplus · Accepted Answer

This statement is true. The present value and future value are affected by the rate of interest as well as the time period in which interest accumulates. The present value is the current value of a sum of money, while the future value is the value of that same sum of money at a specific date in the future, after interest has been added. The difference between the present value and future value will vary based on the rate of interest and the length of time interest is accumulated.

The Difference Between the Present Value and Future Value Depends