(1) An accumulation function a(f) may have discontinuities. (2) An accumulation function a(#) is positive for all values of t. (3) The effective rate of interest is the amount of money that one unit invested at the start of a period will earn during the period where interest is paid at the end of the period. (4) Assuming that the accumulation function is linear in t, then the effective rate of discount during the ath period is constant. (5) Money accumulates better interest under simple interest than under compound interest for long-term transaction