Which of the Following Statements Is Correct

question 98

Multiple Choice

Which of the following statements is correct?

• A) Cash flow time lines are helpful graphical displays for situations involving simple annual interest but are not useful when time periods are more frequent than annual.
• B) The future value of an annuity due is equal to the future value of an otherwise identical regular annuity with interest compounded on each payment for one additional period.
• C) There is no precise method of calculating either present values or future values when fractional time periods are involved.We must instead use rough approximations.
• D) The terminal value of a stream of uneven cash flows is found by simply summing up all the cash flows.
• E) The annual percentage rate (APR)cannot be equivalent to the effective annual rate (EAR).

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Definitions:

Transcendental Meditation

A form of silent mantra meditation aimed at achieving peace, relaxation, and self-development.

Biofeedback Therapy

A therapeutic technique that teaches individuals to control physiological processes, such as heart rate and muscle tension, through real-time feedback.

Mantras

Sacred utterances, sounds, or phrases in Sanskrit believed to have spiritual or psychological power, often used in meditation.

Physiological Dependence

A condition arising from chronic use of a substance where the body becomes reliant on it for normal functioning, leading to physical withdrawal symptoms when the substance is not taken.