The future value of a single sum [blank].
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

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 investment is being compounded more frequently, leading to a greater accumulation of wealth over time.

The Future Value of a Single Sum [Blank]