Which One of the Following Statements Is Correct Concerning the Time

question 64

Multiple Choice

Which one of the following statements is correct concerning the time value of money?

• A) The future value interest factor is equal to zero if the interest rate is zero.
• 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 of $1 at the end of a year is equal to $1 times 1 plus the annual interest rate.

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