Which of the following statement is falsea as interest rate, Ask an Expert

Finance

Which of the following statement is FALSE?

A. As interest rate increases, present value needed for fixed future investment goal decreases.

B. Interest earned on both the initial principal and the interest reinvested from prior periods is called compound interest.

C. None.

D. As the length of the compounding period increases, small differences in discount rates can lead to large differences in future value.

E. Interest rate and Future value have inverse relationship, when everything else is fixed.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91546466

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