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

Question

Quizplus · Accepted Answer

The future value of a deposit in a savings account is directly proportional to the interest rate. So, the lower the interest rate is, the smaller the future value of the deposit will be. The time period and initial deposit size may also affect the future value, but not as significantly as the interest rate. Therefore, option B is the best choice.

The Future Value of a Deposit in a Savings Account