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    Question

    With respect to time value of money, which of the

    following statement is incorrect?
    A Discounting future amount converts it into present value amount Correct Answer Incorrect Answer
    B ā€˜Present Valueā€™ is the current value of a ā€˜Future Amountā€™ Correct Answer Incorrect Answer
    C Compounding converts present value amount into future value amount Correct Answer Incorrect Answer
    D The present value interest rate or the future value interest rate is known as the discount rate. A higher discount rate will result in a higher value for the amount in future. Correct Answer Incorrect Answer

    Solution

    The correct answer is D

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