Which of the Following Statements Is Correct

question 214

Multiple Choice

Which of the following statements is correct?

• A)Both tax avoidance and tax evasion are legal.
• B)Both tax avoidance and tax evasion are illegal.
• C)Tax avoidance is legal, whereas tax evasion is illegal.
• D)Tax avoidance is illegal, whereas tax evasion is legal.

---

Definitions:

Compounded Quarterly

A method of calculating interest where the interest is added to the principal amount every quarter, leading to interest being earned on interest.

Compounded Semiannually

Refers to the process where interest on a financial product, like a savings account, is calculated and added to the principal amount twice a year.

Compounded Quarterly

The process where interest is calculated and added to the principal sum of an investment or loan on a quarterly basis, leading to an increase in the amount of interest earned over time.

Future Value

The future value of a current asset on a certain date, estimated based on a projected growth or return rate.