You Would Be Making a Wise Decision If You Chose

question 89

Multiple Choice

You would be making a wise decision if you chose to:

• A)base decisions regarding investments on effective rates and base decisions regarding loans on annual percentage rates.
• B)assume all loans and investments are based on simple interest.
• C)accept the loan with the lower effective annual rate rather than the loan with the lower annual percentage rate.
• D)invest in an account paying 6 percent,compounded quarterly,rather than an account paying 6 percent,compounded monthly.
• E)ignore the effective rates and concentrate on the annual percentage rates for all transactions.

---

Definitions:

Breakups

The end of a romantic relationship.

Interpersonal Communication

The exchange of information, thoughts, or feelings between two or more people through verbal or non-verbal methods.

Information

Data that is processed, organized, or structured in a context to make it meaningful or useful.

Transmitted

The process by which information, traits, or infectious agents are passed on or communicated from one entity to another.