Which of the following is true of the discounting factor?
A) The discounting factor is the reciprocal of compounding factor.
B) The discounting factor is the sum of 1 and the rate of interest.
C) The discounting factor is period n times the rate of interest.
D) The discounting factor is computed by dividing period n by the sum of 1 and the rate of interest.
Correct Answer:
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