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Which of the following would best describe what would happen to the time value at the same nominal annual rate of a cash flow as

Which of the following would best describe what would happen to the time value at the same nominal annual rate of a cash flow as the number of interest compounding periods increases?

Both the present value and future value would increase.

The present value would decrease and the future value would increase.

Both the present value and future value would decrease.

The present value would increase and the future value would decrease.

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