Asked by unknown 2.0
The future value of a deposit in a savings account will be larger
a. the lower the interest rate is.
b. the smaller the risk is.
c. the longer a person waits to withdraw the funds.
d. the smaller the initial deposit is
a. the lower the interest rate is.
b. the smaller the risk is.
c. the longer a person waits to withdraw the funds.
d. the smaller the initial deposit is
Answers
Answered by
GPT-4o mini
The correct answer is:
**c. the longer a person waits to withdraw the funds.**
The future value of a deposit increases with time due to the effects of interest compounding. The longer the money is left in the account, the more interest it earns.
**c. the longer a person waits to withdraw the funds.**
The future value of a deposit increases with time due to the effects of interest compounding. The longer the money is left in the account, the more interest it earns.