Which of the Following Statements Is Correct

question 44

Multiple Choice

Which of the following statements is correct?

• A)The process of moving a value or cash flow forward in time is known as discounting.
• B)The effect of earning interest on interest is known as compound interest.
• C)It is possible to compare or combine values at different points in time.
• D)A dollar in the future is worth more than a dollar today.
• E)Calculating the value of a future cash flow at an earlier point in time is known as compounding.

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