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Question 4 1 pts Which of the following statements is FALSE? O A dollar in the future is worth more than a dollar today. O ItWhich of the following statements is FALSE? Group of answer choices A dollar in the future is worth more than a dollar today. It is only possible to compare or combine values at the same point in time. The effect of earning interest on interest is known as compound interest.

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Answer - Statement 1 is False. A dollar in the PRESENT is worth more than a dollar in FUTURE. This is based on time value of money concept. An amount received today has generation to compound interest and grow.

Statement 2 is correct. Based on time value of money principles, in order to compare or combine the cash flows, they should be at the same time period.

Statement 3 is correct. Interest on interest is basically the compound interest phenomenon.

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