The correct answer is A) True.
This concept is based on the time value of money, which states that money available today is worth more than the same amount in the future due to its potential earning capacity. When you invest money at a higher interest rate, the returns on that investment compound over time. This means that over a certain period, the future value of the investment would be larger because the interest accrued is higher.
For example, if you invest $100 at an interest rate of 5% annually, after one year, you’ll have $105. However, if the interest rate is 10%, you’ll end up with $110 after the same period. Therefore, everything else being equal, a higher interest rate does indeed lead to a higher future value, making the statement true.