Which One of the Following Statements Concerning the Annual Percentage

question 396

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.

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Definitions:

Mass Extinction

A significant and rapid decrease in the diversity and abundance of life on Earth, often due to catastrophic events.

Natural Process

A sequence of events or phenomena that occurs in the natural world without human intervention.

Extinctions

The permanent and irreversible loss of species from Earth, often due to environmental changes, natural disasters, or human activities.

Desertification

The conversion of lush, fertile ground into desolate deserts, commonly triggered by lack of rain, cutting down forests, or faulty agricultural techniques.