Which of the following will increase the future value of a lump sum investment?
I.decreasing the interest rate
II.increasing the interest rate
III.increasing the time period
IV.decreasing the amount of the lump sum investment
A)I and III only
B)I and IV only
C)II and III only
D)II and IV only
E)II,III and IV only

Question

Quizplus · Accepted Answer

Increasing the interest rate and increasing the time period both contribute to the growth of the investment's future value. Decreasing the lump sum investment would have the opposite effect and decrease the future value. Therefore, choices I and IV are ruled out, and the answer is either C or E. However, decreasing the interest rate would also have the opposite effect and decrease the future value, ruling out choice E. Therefore, the correct answer is C, II and III only.

Which of the Following Will Increase the Future Value of a Lump