As the interest rate increases for any given period, the future value interest factor will
A) remain unchanged.
B) decrease.
C) increase.
D) move toward 1.

Name: As the interest rate increases for any given period, the future value interest factor will A) remain unchanged. B) decrease. C) increase. D) move toward 1.
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Question

Quizplus · Accepted Answer

As the interest rate increases, the future value interest factor increases because the amount of interest earned on an investment grows, leading to a higher future value.

As the Interest Rate Increases for Any Given Period, the Future