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almond37 [142]
3 years ago
9

The future value of a dollar​ ________ as the interest rate increases and​ ________ the longer the money remains invested. A. ​d

ecreases; decreases B. ​increases; increases C. ​decreases; increases D. ​increases; decreases
Business
1 answer:
Stels [109]3 years ago
4 0

Answer:

B. ​increases; increases

Explanation:

<em>As the interest rate increases, the money invested today will bring higher interest in the future. </em>

For example if you lend $1,000 and the interest rate is 4% you will receive $1,040 after one year, if the interest rate is 6% your money will become $1,060

<em>Future value should be higher the longer money is invested because the borrower should be able to do more activities that bring profit. </em>

For example if you lend $1,000 and the interest rate is 4% you will receive 1,000x(1+0.04) = $1,040 dollars after one year and 1,000x1.04^{2} = $1081 after 2 year

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Hello there!

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8 0
3 years ago
Read 2 more answers
Which of the following statements most accurately describes the state of banking in the U.S.?
trapecia [35]

Answer:

B. A large number of very large and small banks

I think

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In processing orders, an operations professional sees that a customer purchased $24,999 in mutual fund shares today. The operati
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Answer:

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the breakeven quantity at current price is 500 units

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