With respect to time value of money, which of the

following statement is incorrect?

A Discounting future amount converts it into present value amount

B ‘Present Value’ is the current value of a ‘Future Amount’

C Compounding converts present value amount into future value amount

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.

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Coal India Management Trainee

Coal India MT Legal

With respect to time value of money, which of the

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