Which of the following statements is true?a. When the interest rate increases, the present value of asingle amount decreases.b. When the number of interest periods increases, thepresent value of a single amount increases.c. When the interest rate increases, the present value of anannuity increases.d. None of the above are true.

simple payback period will be less than the payback period considering compounded interest rate (for the same amount and same period): True or False

None

17. Which of the following statements is true? Select one: a. Simple interest relates to future value whereas compound interest relates to present value b. Simple interest pays interest only on a fixed principal amount whereas compound interest also pays interest on interest c. Simple interest relates to present value whereas compound interest relates to future value d. Simple interest applies when an investor receives payments and compound interest applies when an investor makes payments