Randy saves money using an account which earns interest over the course of several years. which statement is true?

A. the value of money in his account increases over time.

B. the value of money in his account remains constant over time.

C. the future value of his account is equal to the present value.

D. the present value of money in his account is greater than the future value.

Question

Misael Huff

Mathematics

5 January, 06:58

Randy saves money using an account which earns interest over the course of several years. which statement is true?

A. the value of money in his account increases over time.

B. the value of money in his account remains constant over time.

C. the future value of his account is equal to the present value.

D. the present value of money in his account is greater than the future value.

+3

Answers (1)

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Lassie · Answer 1

The correct statement is statement A - the value of money in his account increases over time.

As given, Randy saves money in some account and that account earns interest. Interest is defined as that money which the bank pays you at a particular rate on your savings account or fixed deposits. So, this interest money is added to your own deposited money, eventually increasing it over a period of time.