Which of the Following Statements Is True

question 39

Multiple Choice

Which of the following statements is true?

• A)The process of accumulating interest on interest is referred to as discounting.
• B)The higher the discount rate,the higher the present value.
• C)If interest is 12% compounded annually,$1,200 due one year from today is equivalent to $1,000 today.
• D)If interest is 10% compounded annually,$1,100 due one year from today is equivalent to $1,000 today.

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Definitions:

Long-term Memory

A kind of memory that holds information for a long duration, from several days to many years.

Memory

The cognitive process of encoding, storing, and retrieving information, playing a vital role in learning and consciousness.

Retain Information

The ability or process of keeping or holding knowledge in the memory for later recall or use.

Learning

Learning is a process through which experience or practice leads to a relatively permanent change in behavior or knowledge, encompassing a wide range of cognitive, emotional, and environmental influences.