Question: Select the statement that correctly explains the relationship between interest rates and present or future value. The interest rate and the future value of an
Select the statement that correctly explains the relationship between interest rates and present or future value.
The interest rate and the future value of an investment are inversely related.
Assuming other variables stay the same, if the interest rate increases, the future value of an investment increases.
Assuming other variables stay the same, if the interest rate decreases, the future value of an investment increases.
Assuming other variables stay the same, if the interest rate decreases, the present value of an investment decreases.
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