The future value of a dollar as the interest rate increases and the longer the money remains invested. a. decreases; decreases b. increases; increases c. decreases; increases d. increases; decreases

B. increases; increases

Explanation:

As the interest rate increases, the money invested today will bring higher interest in the future.

For example if you lend $1,000 and the interest rate is 4% you will receive $1,040 after one year, if the interest rate is 6% your money will become $1,060

Future value should be higher the longer money is invested because the borrower should be able to do more activities that bring profit.

For example if you lend $1,000 and the interest rate is 4% you will receive 1,000x(1+0.04) = $1,040 dollars after one year and 1,000x = $1081 after 2 year

answer; buying the bill at a discount from the face value to be received at maturity;