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1.Simple interest can be defined as interest earned only on the original principal. T F 2.Compound interest can defined as interest on interest or interest

1.Simple interest can be defined as interest earned only on the original principal. T F

2.Compound interest can defined as "interest on interest" or interest on the reinvestment T F

3.The effects of compounding result in the investment becoming larger over time. T F

4,The computation of present value answers the question " What is the current value of an amount to be received in the future?" T F

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