What typically increases with a capital gain?

A capital gain is the increase in the value of an asset or investment over time, which occurs when the asset is sold for a price higher than its original purchase price. This rise in value reflects the appreciation of the investment, which can result from various factors, such as positive market conditions, demand for the asset, or improvements in the underlying entity's financial performance.

Choosing the option related to the value of an investment over time accurately captures the essence of a capital gain. As the investment appreciates, the owner can recognize a profit when they sell it compared to the purchase price.

In contrast, the other options do not pertain to capital gains. The original purchase price remains stationary and is a fixed cost of the asset, while interest rates on loans relate to borrowing costs and are not directly connected to the appreciation of an investment. Similarly, the balance of a checking account is influenced by transactions rather than capital gains, making it unrelated to the concept at hand.