The Future Value of a Single Sum

question 30

Multiple Choice

The future value of a single sum

• A) increases as the compound rate decreases.
• B) decreases as the compound rate increases.
• C) increases as the number of compound periods decreases.
• D) increases as the compound rate increases.

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Definitions:

Null Hypothesis

A statement in statistical hypothesis testing that assumes no effect or no difference between phenomena or populations.

Level of Risk

The probability or chance of experiencing harm or loss.

One-sample Z-test

A statistical test used to determine whether there is a significant difference between the mean of a sample and a known or hypothesized population mean.

Mean of a Sample

The average value obtained by dividing the sum of all observations in a sample by the number of observations.