Raising a Fraction to Higher Terms Does Change the Value

question 11

True/False

Raising a fraction to higher terms does change the value of the fraction.

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Definitions:

Present Values

Present values represent the sum total of all future cash flows of an investment or project discounted back to their value today.

Future Values

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today, accounting for interest or capital gains.

Simple Interest

Interest computed solely on the initial sum of money, or on the remaining balance of the principal that is not yet paid off.

Compounded Annually

Refers to the process where interest is calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.