Which of the Following Statements Is False

question 41

Multiple Choice

Which of the following statements is false?

• A) Because interest rates may be quoted for different time intervals, it is often necessary to adjust the interest rate to a time period that matches that of our cash flows.
• B) The effective annual rate indicates the amount of interest that will be earned at the end of one year.
• C) The annual percentage rate indicates the amount of simple interest earned in one year.
• D) The annual percentage rate indicates the amount of interest including the effect of compounding.

---

Definitions:

Calculator

An electronic device or software program used for performing mathematical calculations.

Real Number

A numerical representation of a quantity on a continuous spectrum, encompassing all rational and irrational numbers.

Radical Expression

An algebraic expression that contains a square root, cube root, or any other higher root.

Evaluate

The process of determining the value of a mathematical expression.