The future value of a deposit in a savings account will be larger
A)the longer a person waits to withdraw the funds.
B)the higher the interest rate is.
C)the larger the initial deposit is.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the options mentioned in A, B, and C contribute to the increase in the future value of a deposit in a savings account. By waiting longer to withdraw funds, the account has more time to earn interest, which increases the future value. A higher interest rate implies more interest earned over time, which also boosts the future value. Similarly, a larger initial deposit amount means more money to earn interest and leads to a higher future value. Therefore, all three statements are accurate, making choice D the best option.

The Future Value of a Deposit in a Savings Account