Other Things Being Equal,the More Frequent the Compounding Period,the

question 21

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:

Acronym

A word formed from the initial letters of other words.

Implied Covenant

A legal concept that infers certain promises or conditions in a contract even though they are not expressly stated.

Good Faith

The honest intention to act without taking an unfair advantage over another party in a transaction.

Unemployment Compensation

Financial payments made to individuals who have lost their jobs, intended to support them financially while they seek new employment.