Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The process of accumulating interest on interest is referred to as discounting.
B) The higher the discount rate, the higher the present value.
C) If interest is 11% compounded annually, $1,100 due one year from today is equivalent to $1,000 today.
D) If interest is 4% compounded annually, $10,400 due one year from today is equivalent to $10,000 today.