Answer: Increases but by less than double
Explanation:
The formula for future value will be calculated as:
FV = PV (1 + r )^n
When interest rate = 5%, then the future value will be:
= 1 × (1 + 5%)^10
= 1 × (1 + 0.05)^10
= 1 × (1.05)^10
= 1.63
When Interest rate is 10%, then the future value will be:
= 1 × (1 + 10%)^10
= 1 × (1 + 0.10)^10
= 1 × (1.10)^10
= 2.59
Therefore, the answer is "Increases but by less than double"
