Question

Everything else being equal, the higher the interest rate, the higher the future value. Question 27 options: True False

Answer 1

Everything else being equal, the higher the interest rate, the higher the future value (true).

What is the relationship between interest rate and future value?

Interest rate and future value have a positive relationship. The higher interest rate is, the higher the future value. The lower interest rate is, the lower the future value.

For example,  if a person invests 1000 for a year at an interest rate of 20%  and his sister invests 1000 for a year at 10%. Their future values are:

(1000 x 1.20) = 1200

(1000 x 1.10) = 1100

To learn more about interest rate, please check: https://brainly.com/question/14935026

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