1. Write TRUE if the statement is correct and FALSE if the statement is wrong. A. Interest is the difference between the amount borrowed and the principal.......... B. Compound interest is computed on the principal and any interest earned that has not been paid or received.................. C. The process of determining the present value is referred to as discounting the future amount.................. D. A higher discount rate produces a higher present value............. E. In computing the present value of an annuity, it is not necessary to know the number of discount periods................... F. The decision to make long-term capital investments is best evaluated using discounting techniques that recognize the time value of money................... G. If $40,000 is put in a savings account paying interest of 4% compounded an- nually, $48,666 will be in the account at the end of 5 year................ H. In present value calculations, the process of determining the present value is called discounting............... I. The present value of $10,000 to be received in 5 years will be smaller if the discount rate is increased................... J. The future value of a single amount is the value at a future date of a given amount invested now, assuming compound interes................... K. When the periodic payments are not equal in each period, the future value can be computed by using a future value of an annuity table.............. L. Many companies calculate the future value of the cash flows involved in an investment in evaluating long-term capital investments