Question

In the process of compounding, we move fror[ Select ] to present future Select ] In the process of discounting, we move fromSelect ] to Select ] In th I Select]case, interest earns interest. compound rate of interest simple rate of interest In the Select] cast, interest doesn't earn interest. There are 12 months in one year, 4 weeks in one month, so 1 year- 48 weeks. O True False

Answer 1

1) In the process of compounding we move from present to future,

In the process of discounting we move from future to present.

2) In the compound rate of interest, interest earns interest,

In the simple rate of interest, interest does not earn interest.

3)False ,there are 52 weeks, because in some months there are 5 weeks.