A Contract Under Which One or Both Parties Have Not

question 44

Multiple Choice

A contract under which one or both parties have not yet fully performed is termed a(n) :

• A) void agreement.
• B) executory contract.
• C) executive contract.
• D) executed contract.

---

Definitions:

Annual Effective Rate

The interest rate that is adjusted for compounding over a given period, showing the real return on savings or cost of borrowing.

Nominal Rate

The interest rate or rate of return quoted on a loan or investment, not adjusted for inflation.

Compounding Intervals

The frequency with which interest is added to the principal balance of an investment, affecting the total interest earned over time.

Annuity Due

A type of annuity where payments are made at the beginning of each period, as opposed to the end, which is more common in regular annuities.