Which of the Following Correctly Defines Future Value

question 6

Multiple Choice

Which of the following correctly defines future value?

• A)The current value of a said future amount based on the interest rate and time in the account.
• B)The value of an amount at a future date based on the interest rate and time in the account.
• C)A single,one-time payment.
• D)A series of equal payments that are made at equal intervals over time.

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Definitions:

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs, highlighting the trade-offs in production levels between two commodities.

Fully Employed Resources

A situation in which all available labor and capital resources are being used in the most economically efficient way.

Economic Growth

The increase in a country's output of goods and services over time, indicated by a rise in real GDP.

Poor Countries

Nations with low levels of economic productivity, low living standards, and low levels of human development indices compared to other countries.