By Increasing the Number of Compounding Periods in a Year,while

question 23

Multiple Choice

By increasing the number of compounding periods in a year,while holding the annual percentage rate constant,you will

• A) decrease the annual percentage yield.
• B) increase the annual percentage yield.
• C) not effect the annual percentage yield.
• D) increase the dollar return on an investment but will decrease the annual percentage yield.

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Definitions:

Actual Expenses

Expenses that have been paid out or actually incurred, as opposed to budgeted or projected expenses.

Budgeted Amounts

Financial projections or plans for future income, expenditure, and cash flow over a specific period.

Segmental Accounting Report

Financial reports broken down by specific parts of a company, such as divisions or departments, to assess performance of each separately.

Departmental Accounting Report

A financial report detailing the revenues and expenses of each department within an organization, allowing for the assessment of each department's profitability.