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:

Imposed Treatment

Medical or therapeutic care administered to an individual without their explicit consent, typically under specific legal or ethical justifications.

Dependent Variable

The variable being tested and measured in a scientific experiment, which is affected by the independent variable.

Independent Variable

The variable in an experiment that is manipulated or changed to observe its effect on the dependent variable.

Negative Correlation

A relationship between two variables where one variable increases as the other decreases, and vice versa.