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    Question

    With respect to time value of money, which of the

    following statement is incorrect?
    A When interest is calculated on total of previously earned interest and the original principal it is called compound interest Correct Answer Incorrect Answer
    B If interest is calculated on original principal amount it is called simple interest Correct Answer Incorrect Answer
    C Future value is also known as terminal value Correct Answer Incorrect Answer
    D The longer the funds are invested, the greater the advantage with simple interest Correct Answer Incorrect Answer

    Solution

    The correct answer is D

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