Which of the Following Statements Is Most Correct

question 8

Multiple Choice

Which of the following statements is most correct?

• A) There is an inverse relation between the present value interest factor of an annuity and the future value interest factor of an annuity, i.e., one is the reciprocal of the other.
• B) The future value of an ordinary annuity can be determined as the product of the annual payment and the appropriate future value interest factor for an ordinary annuity.
• C) If a bank uses daily compounding for a savings account, the nominal rate (or APR) will be less than the effective annual rate.
• D) If the bank uses monthly compounding the nominal rate (or APR) will be greater than if it compounded daily.

---

Definitions:

Demographic Trends

Patterns and changes in population characteristics over time, such as age, gender distribution, and birth rates.

Succession Planning

The process of identifying and developing new leaders who can replace old leaders when they leave, retire, or pass away, ensuring organizational continuity.

PHC

Stands for Primary Health Care, which is a whole-of-society approach to health and well-being centred on the needs and preferences of individuals, families, and communities.

Succession Planning

The strategy for identifying and developing future leaders within an organization to ensure continuity in key positions.