Which One of the Following Is Correct Concerning the Annual

question 178

Multiple Choice

Which one of the following is correct concerning the annual percentage rate (APR) ?

• A) The APR is greater than the effective annual rate.
• B) The APR formula for rate disclosure is [1 + (r/m)]m-1.
• C) The APR is the rate which lenders are required to disclose.
• D) The APR is best used to compare offers from various lenders.
• E) The APR considers all the effects of compounding.

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Definitions:

Target Audience

A specific group of consumers identified as the recipients of a particular marketing message or campaign, based on demographics, interests, or other characteristics.

Services Offered

The various tasks or acts that a company performs for customers in exchange for payment, which can include physical, intangible, or digital activities.

Descriptive Research

A research method focused on describing characteristics of a population or phenomenon being studied without influencing them.