q13

You are looking at an investment that will provide the following cash flows in dollars: (Year 1: $1,000); (Year 2: $2,000); (Year 3: $3,000) - If the interest rate increases today from 2.0% to 4.0%, what will happen to the Future Value of the investment at the end of year 3? "

The future value will decrease.

The future value will decrease but only slightly.

There is insufficient information to answer this question.

The future value will remain unchanged.

The future value will increase.