When computing the number of deposits needed to accumulate a future sum, it will take longer if the interest rates are higher, holding the future value and deposit size constant.

Question

Quizplus · Accepted Answer

When interest rates are higher, the growth rate of the invested amount also increases. This means that the future sum can be accumulated more quickly with fewer deposits, holding the deposit size constant.

When Computing the Number of Deposits Needed to Accumulate a Future