Question: 1. (TRUE or FALSE?) Compound interest decreases as the number of years increases. 2. (TRUE or FALSE?) The process of converting the initial amount into

1. (TRUE or FALSE?) Compound interest decreases as the number of years increases.

2. (TRUE or FALSE?) The process of converting the initial amount into a future value is called discounting.

3. (TRUE or FALSE?) The future value is simply the current value of a future cash flow that has been discounted at the appropriate discount rate.

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