So long as the interest is greater than zero, the future value of any balance is
A)greater than the value itself.
B)smaller than the value itself.
C)equal to the value itself.
D)either larger or smaller than the balance itself, depending upon the size of the positive interest rate.

Question

Quizplus · Accepted Answer

When interest is positive, it means that the balance will earn additional money over time. This additional money will be added to the initial balance, resulting in a higher future value. Therefore, the future value of any balance with a positive interest rate will always be greater than the value itself.

So Long as the Interest Is Greater Than Zero, the Future