Present value for fixed future investment goal decreases

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Reference no: EM13877948

Which of the following statement is FALSE?

A. As interest rate increases, present value needed for fixed future investment goal decreases.

B. Interest earned on both the initial principal and the interest reinvested from prior periods is called compound interest.

C. None.

D. As the length of the compounding period increases, small differences in discount rates can lead to large differences in future value.

E. Interest rate and Future value have inverse relationship, when everything else is fixed.

Reference no: EM13877948

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