Which of the Following Statements Is Most Correct

question 49

Multiple Choice

Which of the following statements is most correct?

• A) If annual compounding is used,the effective annual rate equals the simple rate.
• B) If annual compounding is used,the effective annual rate equals the periodic rate.
• C) If a loan has a 12 percent simple rate with semiannual compounding,its effective annual rate is equal to 11/66 percent.
• D) Both answers a and b are correct.
• E) Both answers a and c are correct.

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Definitions:

GRIT Strategy

A method proposed for de-escalating conflict, involving the announcement of conciliatory intentions and the invitation for the other side to reciprocate.

Unilateral Actions

Actions or decisions made by one party or nation independently without consultation, agreement, or approval from others.

Concession

An act of compromising or yielding on a point, demand, or stance in the course of negotiations.

Perceived Differences

Differences that are noticed or believed to exist by an individual or group, whether or not they are real.