The Future Value of a Lump-Sum Investment Will Increase If

question 57

Multiple Choice

The future value of a lump-sum investment will increase if you:

• A)decrease the interest rate.
• B)decrease the number of compounding periods.
• C)increase the time period.
• D)decrease the time period.
• E)decrease the lump-sum amount.

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Definitions:

Trust Fund

A legal entity established to hold assets on behalf of a person or group, managed by a trustee.

Additional Government Borrowing

The process by which the government incurs more debt through issuing bonds or taking loans to finance its expenditure beyond its income.

Higher Taxes

Refers to increased charges imposed by governments on individuals or entities' income, activities, or transactions.

U.S. Treasury Bonds

Long-term government debt securities issued by the United States Department of the Treasury with a maturity of more than 10 years.