Which One of the Following Statements Is Correct

question 258

Multiple Choice

Which one of the following statements is correct?

• A) The future value decreases as the period of time increases, all else constant.
• B) The future value of $100 invested at 6% simple interest increases at a constant rate as the period of time increases.
• C) There is an inverse relationship between the future value of a lump sum investment and the length of the investment period.
• D) The future value of $100 invested at 6%, compounded annually, increases over time in an exponential manner.
• E) Because time is the exponent in the future value formula, the length of an investment period has minimal effect on the future value of the investment.

---

Definitions:

Job Attitudes

Psychological tendencies expressed by evaluating one's job with some degree of favor or disfavor, encompassing aspects like job satisfaction and organizational commitment.

Compensation Attitudes

Refers to the beliefs and feelings employees have about their pay and how it motivates them.

Return On Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Compensation Objectives

Goals that an organization's pay system aims to achieve, such as attracting and retaining employees, rewarding performance, and ensuring equity.