Which One of the Following Statements Is Correct Concerning the Time

question 30

Multiple Choice

Which one of the following statements is correct concerning the time value of money?

• A)The future value of $1 at the end of two years is equal to $1 plus the first year's interest times 1 plus the annual interest rate.
• B)As the interest rate increases for any given year, the future value interest factor will decrease.
• C)The future value of $1 decreases with the passage of time.
• D)The future value interest factor is equal to zero if the interest rate is zero.

---

Definitions:

Evocative Images

Visuals that vividly trigger emotions or memories through their representation.

Persuasive Claim

A statement designed to convince or influence others to adopt a particular viewpoint or to take a specific action.

Adjustment Request

A formal or informal plea to alter or modify an existing condition, situation, or process.

Marketing Messages

Communications designed to influence how people think about a product, service, or brand aiming to motivate purchases or support.