Investments and loans base their interest calculations on one of two possible methods: the complex interest and the uncomplicated interest methods. Both methods apply three variables-the amount of principal, the interest rate, and the investment or deposit period-to the amount deposited or invested in order to compute the amount of interest. However, the two methods differ in their relationship between the variables. Assume that the variables I, N, and PV represent the interest rate, investment or deposit period, and present value of the amount deposited or invested, respectively. Which equation best represents the calculation of a future value (FV) using: Compound interest? Simple interest? Identify whether the following statements about the simple and compound interest methods are true or false. Statement True False After the end of the second year and all other factors remaining equal, a future value based O on compound interest will never exceed the future value based on simple interest The process of earning simple interest does not allow a depositor or investor to earn interestO on any previously earned interest. All other factors being equal, both the simple interest and the compound interest methodsl accrue the same amount of earned interest by the end of the first year