An increase in future value can be caused by [blank].
A)a decrease in the: annual interest rate
B)an increase in the: number of compounding periods
C)deferring the original investment by one or more periods
D)extending the compound period

Question

Quizplus · Accepted Answer

An increase in the number of compounding periods increases the frequency at which interest is earned and reinvested, leading to a higher future value. The other options would lead to a decrease in future value.

An Increase in Future Value Can Be Caused by [Blank]