Which of the Following Statements Is True

question 84

Multiple Choice

Which of the following statements is true?

• A)The process of discounting is the inverse of the process of compounding.
• B)Ending balances using simple interest are always greater than ending balances using compound interest at positive interest rates.
• C)The present value of an annuity due is always less than the present value of an equivalent ordinary annuity at positive interest rates.
• D)The future value of an annuity due is always less than the present value of an equivalent ordinary annuity at positive interest rates.

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Definitions:

Liberty of Contract

The legal principle that allows individuals the freedom to negotiate the terms of their own contracts without excessive government interference.

Union Membership

The status of being a member of a labor union, an organization that represents the interests of workers in specific industries or occupations.

Workers' Militancy

The readiness or tendency of workers and labor unions to engage in strikes, protests, or confrontational actions to assert rights and achieve labor objectives.

Tactical Skills

Refers to the practical expertise and procedures individuals use in situations to achieve specific objectives effectively and efficiently.