Answered

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With regard to money deposited in a bank, future values are:

A. smaller than present values.
B. larger than present values.
C. equal to present values.
D. completely independent of present values.

Sagot :

GinnyAnswer
When money is deposited in a bank, the future value typically becomes larger than the present value due to the accrual of interest over time. This phenomenon relates to the fundamental principle of the time value of money, which states that money available now is worth more than the same amount in the future due to its earnings potential.

For instance, if you deposit a certain amount of money in a savings account, the bank pays you interest, which adds to your initial deposit amount. As time passes, this interest compounds, meaning you earn interest on both your original deposit and the accrued interest. Hence, over time, the value of your deposit grows.

Therefore, the correct answer is:

О larger than present values.
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