Which of the Following Equations Is Incorrect

question 6

Multiple Choice

Which of the following equations is incorrect?

• A) - 1= APR
• B) Equivalent n-Period Discount Rate = (1 + r)ⁿ - 1
• C) 1 + EAR =
• D) Interest Rate per Compounding Period =

---

Definitions:

System-2

Refers to a mode of thinking in Daniel Kahneman's dual-process theory, characterized by more deliberate, effortful, and analytical reasoning.

Liberal Arts

A range of subjects including literature, philosophy, mathematics, and social and physical sciences, aimed at imparting general knowledge and critical thinking skills.

Thoughtful Problem Solving

An approach to solving problems that involves careful consideration, planning, and decision making.

Power Differential Heuristic

A cognitive short-cut used to quickly assess and respond to situations based on perceived imbalances in power or authority.