Which of the following statements correctly describes aspects of compound interest as discussed in lectures?

Group of answer choices

1.None of the other statements are correct

2.More than one of the other statements are correct

3.A loan that has been created that pays compound interest, will involve interest payments that are calculated on the basis of both the principal amount borrowed as well as any interest that has accumulated to date.

4.By convention, compound interest is the main method used for the pricing of short-term debt securities like Treasury Notes.

5.With compound interest, the future value of any cash flow is simply its current value discounted back at a rate of r% per period for n periods.