Which Statement Is FALSE Concerning the Time Value of Money

question 2

Multiple Choice

Which statement is FALSE concerning the time value of money?

• A) The greater the compound frequency, the greater the EAR.
• B) The EAR is always greater than the APR.
• C) An account that pays simple interest will have a lower FV than an account that pays compound interest.
• D) The stated interest rate is also referred to as the APR.

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