Future value increases with increases in the interest rate or the period of time funds are left on deposit.

Name: Future value increases with increases in the interest rate or the period of time funds are left on deposit.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

The future value of a deposit increases as the interest rate and time period increases. This is because with a higher interest rate, the investment grows faster, and with a longer time period, there is more time for compound interest to accumulate. Therefore, the statement is true.

Future Value Increases with Increases in the Interest Rate or the Period