2.Which of the following statements is FALSE?

The process of moving a value or cash flow forward in time is known as compounding.

The effect of earning interest on interest is known as compound interest.

It is only possible to compare or combine values at the same point in time.

A dollar in the future is worth more than a dollar today

7.Assuming the same amount of money will be received at theendof the term, which of the following will have the highest present value?

6% interest for five years 6% interest for eight years 6% interest for ten years 8% interest for five years 8% interest for ten years