Which of the Following Best Describes the Annual Percentage Rate

question 114

Multiple Choice

Which of the following best describes the annual percentage rate?

• A)the quoted interest rate which considered with the compounding period gives the effective interest rate
• B)the effective annual rate after compounding is taken into account
• C)the discount rate when compounded more than once a year or less than once a year
• D)the discount rate when it is divided by the number of of times it is compounded in a year
• E)the total amount of interest that will be earned in one year

---

Definitions:

Common Resource

A type of good that is non-excludable and rivalrous, meaning it is difficult to prevent anyone from using it, but one person's use diminishes the quantity or quality available to others.

Total Surplus

The total combined benefit to society comprised of consumer and producer surplus in a market.

Cleaning Hours

The measure of time spent on cleaning tasks, either in a personal, domestic setting or by professional cleaning services in various environments.

Private Markets

Economic markets that operate without direct government control, where transactions occur between private entities.