Which of the Following Statements Is Correct?
A) for All $\ge$

question 20

Multiple Choice

Which of the following statements is correct?

• A) For all positive values of k and n, FVIFr, n \(\ge\)1.0 and PVIFAr, n \(\ge\) n.
• B) You may use the PVIF tables to find the present value of an uneven series of payments.However, the PVIFA tables can never be of use, even if some of the payments constitute an annuity (for example, R100 each year for Years 3, 4, and 5), because the entire series does not constitute an annuity.
• C) If a bank uses quarterly compounding for saving accounts, the simple rate will be greater than the effective annual rate.
• D) The present value of a future sum decreases as either the simple interest rate or the number of discount periods per year increases.
• E) All of the above statements are false.

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Definitions:

Total Revenue

The overall amount of money earned by a company from the sale of its goods or services, calculated as the price per unit times the number of units sold.

Price Charged

Price charged refers to the amount of money levied on a product or service by a seller, which the buyer must pay to complete the transaction.

Total Revenue Curve

A graphical representation showing how total revenue changes as the quantity sold of a good or service varies, holding all else constant.

Marginal Revenue Curve

A graphical representation showing the change in total revenue with respect to changes in the quantity of goods or services sold.