Answer:
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[tex]1.04^{2}[/tex] = $1081 after 2 year
