Which One of the Following Statements Is Correct Concerning the Time

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 two years is equal to $1 plus the first year's interest 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.