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

question 74

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:

Marginal Unit

The additional unit of output or product considered in decision-making, analyzing the benefits of producing one additional unit.

Price

Price signifies the amount of money expected, required, or given in payment for something, acting as the mediator of the supply and demand in a market.

Ethanol Subsidies

Financial incentives provided by governments to support the production and use of ethanol as a form of alternative energy, usually to promote environmental benefits or energy independence.

Farm Land

Land that is used for agricultural purposes, such as growing crops and rearing livestock.