The future value of a single sum
A) increases as the compound rate decreases.
B) decreases as the compound rate increases.
C) increases as the number of compound periods decreases.
D) increases as the compound rate increases.

Question

Quizplus · Accepted Answer

The future value of a single sum increases as the compound rate increases. This is because a higher compound rate means that the interest earned is being reinvested more frequently, which leads to a greater accumulation of interest over time.

The Future Value of a Single Sum