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.

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Definitions:

Behavior

The actions or reactions of an object or organism, usually in relation to the environment.

Forebrain

The anterior part of the brain, including the cerebral hemispheres, the thalamus, and the hypothalamus, responsible for complex behaviors, thought, and emotion.

Action Potential

A temporary reversal of the electrical polarization of the membrane of a nerve cell or muscle cell, allowing for the transmission of signals.

Axon

A long, slender projection of a nerve cell, or neuron, that conducts electrical impulses away from the neuron's cell body.