Given an Interest Rate of Zero Percent, the Future Value

question 23

Multiple Choice

Given an interest rate of zero percent, the future value of a lump sum invested today will always:

• A)remain constant, regardless of the investment time period.
• B)decrease if the investment time period is shortened.
• C)decrease if the investment time period is lengthened.
• D)be equal to $0.
• E)be infinite in value.

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Definitions:

Impersonal

Lacking personal emotion or warmth; detached or objective.

Self-disclosure

The act of revealing personal information to others, which can strengthen relationships and foster trust.

Very Personal

Describes a level of interaction or communication that is highly individualized and intimate.

Impersonal

Lacking personal features or involvement; not engaging in or involving personal interaction or relationships.