Which one of the following statements is correct concerning the future value of a lump sum deposited into an account that pays compound interest? Assume that the account pays an interest rate that is greater than zero.

Select one:

a. As long as the interest rate remains constant, the future value will grow at a constant rate over time.

b. The future value will grow at an increasing rate over time because the interest rate is the exponential function.

c. The future value will grow by an increasing amount over time because of the compounding effect.

d. At any given point in time, the future value will be greater than the lower rate of interest.