Question

Why does the value of money you save increase over time?

A. Because it earns interest.
B. Because it is not spent.
C. Because future value is always greater than present value.

Answer 1

The value of money you save increase over time because it earns interest. The correct option among all the options that are given in the question is the first option or option "A". The other choices are incorrect and can be neglected. I hope that this is the answer that has actually come to your help.

Answer 2

A. Because it earns interest.

Step-by-step explanation

We save money in the financial institutions like banks and micro-finance institutions. This institutions uses this money to do business with it such as lending it to other people, setting up other money generation activities among others.

By so doing your money must be increased since it is used in other ways. These money increase is known as interest.

So the money you save increase in value over the time because it earns interest.