Which of the following will increase the future value of a lump sum investment? I. Increasing the interest rate II. Increasing the time period III. Decreasing the amount of the lump sum investment IV. None of the above a. I and II only b. I and III only c. II and III only
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The correct answer is (b) I and III only. Decreasing the interest rate and decreasing the amount of the lump sum investment will decrease the future value, while increasing the interest rate and increasing the time period will increase the future value. For the Show more…
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