Which of the Following Statements Is Correct

question 119

Multiple Choice

Which of the following statements is correct?

• A) Simple rates can't be used in present value or future value calculations because they fail to account for compounding effects.
• B) The periodic interest rate can be used directly in calculations as long as the number of payments per year is greater than or equal to the number of compounding periods per year.
• C) In all cases where interest is added or payments are made more frequently than annually,the periodic rate is less than the annual rate.
• D) Generally,the APR is greater than the EAR as a result of compounding effects.
• E) If the compounding period is semiannual then the periodic rate will equal the effective annual rate divided by two.

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Definitions:

Multinational Corporations

Large companies that operate in several countries around the world, often significantly impacting global trade and economies.

International Markets

Trading environments outside of a company's home country, where goods, services, and assets are bought, sold, or exchanged across national borders.

Nicola Sacco

An Italian-American anarchist famously trial and executed alongside Bartolomeo Vanzetti in a controversial case that highlighted American fears of immigrants and radicals in the early 20th century.