Which One of the Following Statements Concerning the Annual Percentage

question 217

Multiple Choice

Which one of the following statements concerning the annual percentage rate is correct?

• A) The annual percentage rate considers interest on interest.
• B) The rate of interest you actually pay on a loan is called the annual percentage rate.
• C) The effective annual rate is lower than the annual percentage rate when an interest rate is compounded quarterly.
• D) When firms advertise the annual percentage rate they are violating lending laws.
• E) The annual percentage rate equals the effective annual rate when the rate on an account is designated as simple interest.

---

Definitions:

Increase Traffic

Refers to the actions and strategies deployed to attract more visitors or users to a website, online platform, or physical location.

Parking Rates

The fees charged for the use of parking spaces, often varying based on location, time, and demand.

MR

Marginal Revenue, which is the additional income generated from selling one more unit of a good or service.

MC

An abbreviation for Marginal Cost, referring to the expense associated with producing an additional unit of output.