2
AssignmentMultiple Choice

Electronic Transactions and Digital Currency

Question 2 • FL-2102371-Personal Finance and Money Management

What best describes the concept of future value?

Answer
A
the amount of money required in the future
B
the original amount of an investment
C
the worth of an investment over time
D
the total cost of an item you plan to purchase in the future

Explanation

Future value is what an investment will be worth at a later date, taking into account how it grows over time, such as through interest. Therefore, “the worth of an investment over time” is the best description. The original amount invested is its present value, not its future value.

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