The future value of a single sum:
A)increases as the compound rate decreases.
B)decreases as the compound rate increases.
C)increases as the number of compound periods decreases.
D)increases as the compound rate increases.
E)none of the above.

Question

Quizplus · Accepted Answer

The future value of a single sum increases as the compound rate increases. This is because a higher compound rate means that the interest earned on the initial principal increases, leading to a greater future value. The other answer choices are incorrect as they do not reflect this relationship.

The Future Value of a Single Sum