For a given interest rate, the future value of $100 increases with the passage of time. Thus, the longer the period of time, the greater the future value.

Question

Quizplus · Accepted Answer

This is because interest is compounded over time, meaning it earns interest on the original amount as well as on any accumulated interest. Therefore, over time the amount of interest earned grows, resulting in a higher future value.

For a Given Interest Rate, the Future Value of $100