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Which of the Following Statements Is Not True

question 11

Multiple Choice

Which of the following statements is not true?


Definitions:

Principal

The original sum of money borrowed in a loan, or the amount of the investment, excluding any interest or growth.

Present Value

The present value of an anticipated sum of money or series of cash flows, considering a certain return rate.

Discounting

The process of determining the present value of a payment or a stream of payments that will be received in the future.

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