In Canada,the Reason an APR Cannot Be Used as a Discount

question 36

Multiple Choice

In Canada,the reason an APR cannot be used as a discount rate in a mortgage calculation is

• A) because it has a different compounding frequency in a year than the payment frequency in a year.
• B) because it has the same compounding frequency in a year as the payment frequency in a year.
• C) because it has twice the compounding frequency in a year that the payment frequency in a year has.
• D) none of the above

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Definitions:

Territorial Concessions

Agreements in which a country cedes a portion of its territory or the rights to it to another country, often as part of a treaty or settlement.

Spanish Monarchy

The political system of Spain in which the country is ruled by a monarch, a family lineage that has historically oscillated between periods of monarchy and republic.

French and Indian War

A series of military engagements between Britain and France in North America (1754–1763), part of a larger conflict known as the Seven Years' War.

British

Relating to Great Britain or the United Kingdom, encompassing England, Scotland, Wales, and Northern Ireland, its people, or its culture.