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Regarding the Time Value of Money, which of the following is FALSE? a. Assuming the time period is held constant, a larger interest rate will
Regarding the Time Value of Money, which of the following is FALSE?
a. | Assuming the time period is held constant, a larger interest rate will result in a larger PV. | |
b. | Compounding refers to the process of using a PV and the correct inputs to find a FV. | |
c. | All else equal, a longer time period will result in a larger FV. | |
d. | If you have an interest rate of 0%, the PV will always be equal to the FV, regardless of time period. |
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