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1. Which of the following statement is correct? a. The smallest compounding period is used when we do continuous compounding. b. Money expected or promised
1. Which of the following statement is correct?
a. The smallest compounding period is used when we do continuous compounding.
b. Money expected or promised in the future is worth more than the same amount of money in hand today.
c. All the answers are incorrect.
d. Present value is positively related to interest rates and the number of periods.
e. Zero interest rate indicates that money has time value.
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