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:

Mood Disorders

A category of mental disorders involving persistent disturbances in mood or emotional state, such as depression or bipolar disorder.

Psychophysiological Disorders

Disorders in which biological, psychological, and sociocultural factors interact to cause or worsen a physical illness. Also known as psychological factors affecting other medical conditions.

Sexual Disorders

Conditions that involve the disruption or distortion of any phase of the sexual response cycle, leading to distress or interpersonal difficulties.

Posttraumatic Stress Disorder

A psychiatric disorder that may occur in people who have experienced or witnessed a traumatic event, characterized by flashbacks, nightmares, and severe anxiety.