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Which of the following is true of discounting factor? a) Discounting factor is the reciprocal of compounding factor. b) Discounting factor is the sum of

Which of the following is true of discounting factor?

a) Discounting factor is the reciprocal of compounding factor.

b) Discounting factor is the sum of 1 and the rate of interest.

c) Discounting factor is period n times the rate of interest.

d) Discounting factor is computed by dividing period n by the sum of 1 and the rate of interest.

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