Other Things Being Equal, the More Frequent the Compounding Period

question 6

Multiple Choice

Other things being equal, the more frequent the compounding period, the:

• A)Higher the APR
• B)Lower the APR
• C)Higher the effective annual interest rate
• D)Lower the effective annual interest rate

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Definitions:

Details of Performance

Specifics outlined in a contract or agreement indicating how and when the contractual obligations must be fulfilled.

Personal Performance

The fulfillment of duties or tasks by an individual, often referring to the execution of a contract by personal action.

Contractual Duty

Obligations that a party is legally bound to perform under a contract.

Debt Collector

A person or company tasked with collecting money owed on past due accounts from debtors.