Which of the Following Statements Is TRUE

question 4

Multiple Choice

Which of the following statements is TRUE?

• A)An investment earning simple interest at rate r always earns less interest compared to the same investment using a compound interest rate of j₁ = r.
• B)When discounting a promissory note,the larger the simple interest rate used to discount the note,the larger will be the proceeds of the note.
• C)On a loan,interest calculated using ordinary interest is always less than that calculate using exact interest.
• D)If a simple discount rate of d is equivalent to a simple interest rate of r,then d < r as long as time t is positive.

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