A Deviation Between What Should Be Happening and What Is

question 25

Multiple Choice

A deviation between what should be happening and what is actually happening that is important enough to make someone think that the deviation ought to be corrected is known as:

• A)a defect.
• B)an error.
• C)a problem.
• D)a variance.

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Definitions:

Daily Compounding

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a daily basis.

EAR

Effective Annual Rate; the real return on an investment, taking into account the effect of compounding interest.

APR

Annual Percentage Rate, representing the yearly interest rate charged on borrowed money.

Total Payments

The cumulative amount of money paid out or expected to be paid out over the duration of an agreement or loan.