Given a rate of return of zero,the future value of a lump sum invested today will always:
A)remain constant,regardless of the period of time
B)decrease as the period of time decreases
C)decrease as the period of time increases
D)increase as the period of time increases
E)remain constant or increase as the period of time increases

Question

Quizplus · Accepted Answer

When the rate of return is zero, there is no growth or interest added to the original investment, so the future value will remain constant regardless of the period of time.

Given a Rate of Return of Zero,the Future Value of a Lump