Multiple Choice
Which one of the following statements is correct concerning the time value of money?
A) The future value of $1 at the end of a year is equal to $1 times 1 plus the annual interest rate.
B) As the interest rate increases for any given year, the future value interest factor will decrease.
C) The future value of $1 decreases with the passage of time.
D) The future value interest factor is equal to zero if the interest rate is zero.
Correct Answer:
Verified
Correct Answer:
Verified
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