All Else Held Constant,the Future Value of a Lump Sum

question 42

Multiple Choice

All else held constant,the future value of a lump sum investment will decrease if the:  

• A)amount of the lump sum investment increases.
• B)time period is increased.
• C)interest is left in the investment.
• D)interest rate increases.
• E)interest is changed to simple interest from compound interest.

---

Definitions:

Federal Income Tax

A tax levied by the United States federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Withheld

The portion of an employee's income that an employer retains as mandated by law or agreement, typically for taxes or other deductions.

Matched by Employer

A benefit where an employer matches the contributions their employees make to a retirement plan, up to a certain percentage.

Installment Note Payable

A debt instrument that requires a series of payments over a specified period until the full amount is paid off.