2. increases with higher interest rates

3. increases with longer periods of time

4. decreases with longer periods of time

Asked
6 months ago

Viewed
822246 times

1. increases with lower interest rates

2. increases with higher interest rates

3. increases with longer periods of time

4. decreases with longer periods of time

2. increases with higher interest rates

3. increases with longer periods of time

4. decreases with longer periods of time

**Answer:**

C. 2 and 3

**Explanation:**

**Note: **Options to the question are as follows "A. 1 and 3
, B. 1 and 4, C. 2 and 3, D. 2 and 4.

** **

FV = PV(1 + r)^t

Future value of a dollar is the value of a dollar if it earns a certain interest fro a specified time. Future value increases with an increase in interest rates and time. Conversely, it decreases with a decrease in interest rates and time.

Thus, Option c is correct.

Enter your username or email to reset your password. You will receive an email with instructions on how to reset your password. If you are experiencing problems resetting your password contact us or send us an email