Which of the following statements is true?
A) The longer the time period that funds are invested, the greater the future value.
B) The lower the discount rate that funds are invested at, the greater the future value.
C) The shorter the time period that funds are invested, the greater the future value.
D) The higher the interest rate, the slower the value of an investment will grow.

Question

Quizplus · Accepted Answer

The longer the time period that funds are invested, the greater the opportunity for compound interest to accumulate, leading to a higher future value. B is incorrect because a lower discount rate would also lead to a higher present value, not just future value. C is incorrect for the same reason as A, as a shorter time period would result in less time for compound interest to accumulate. D is incorrect as a higher interest rate would lead to a faster growth in value, assuming other factors remained constant.

Which of the Following Statements Is True