Answer the following statements true (T) or false (F)
1. An amount of money to be received in the future is worth less today than the stated present value amount.
2. Discounting refers to devaluing the item from the higher future value amount to the present value amount through the consideration of interest.
3. The process of earning more interest on a previous period's interest is called future value.
4. Compounding refers to the growth process that turns $1 today into a greater value several periods in the future.
5. The interest factor for the future value of a single sum is equal to (1 + n)i.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
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