While Microsoft Excel Can Be an Efficient Tool for Developing

question 45

Multiple Choice

While Microsoft Excel can be an efficient tool for developing a DSS, compared to using a programming language like C++, a shortcoming of Excel is

• A) it cannot be used effectively for small or medium sized problems.
• B) Excel is not widely understood compared to a language like C++.
• C) it is not widely available for purchase.
• D) errors can creep into formulas somewhat easily.

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Definitions:

Effective Interest Rate

Represents the real cost of borrowing or the real yield on an investment, accounting for compounding periods within a year.

Annual Payments

Regular payments made once per year towards the principal and/or interest of a loan or financial obligation.

Nominal Rate

The interest rate stated on a loan or investment agreement, not accounting for inflation or compounding effects.

Semi-Annual Payments

Payments made twice a year, often used in the context of loan repayments or bond interest payments.