Asked by Jamie PARKER on May 04, 2024
Verified
The future value will increase the lower the rate of interest.
Rate of Interest
The percentage of an amount of money which is charged for its use per period, often annually.
Future Value
The future valuation of an asset or cash that has the same worth as a particular sum at present.
- Evaluate the effect of interest rates on the performance of investments.
Verified Answer
JI
Jihan IslamMay 09, 2024
Final Answer :
False
Explanation :
The future value of an investment typically increases with a higher rate of interest, as the amount of interest earned over time is greater.
Learning Objectives
- Evaluate the effect of interest rates on the performance of investments.