How Are Future Values Affected by Changes in Interest Rates

question 66

Multiple Choice

How are future values affected by changes in interest rates?

• A) The lower the interest rate, the larger the future value will be.
• B) The higher the interest rate, the larger the future value will be.
• C) Future values are not affected by changes in interest rates.
• D) One would need to know the present value in order to determine the impact.

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Definitions:

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Inferential Statistic

A set of mathematical procedures that allows researchers to infer or draw conclusions about a population based on sample data.

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The amount of time taken to respond to a specific stimulus or event.

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