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