Which of the Following Statements Is True of Annual Percentage

question 25

Multiple Choice

Which of the following statements is true of annual percentage rate (APR) ?

• A) The APR is similar to the quoted interest rate, which is a simple annual rate.
• B) The APR calculation adjusts for the effects of compounding and, hence, the time value of money.
• C) The APR is the true cost of borrowing and lending.
• D) The APR takes compounding into account.

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Definitions:

Receptor Sensitivity

involves the responsiveness of receptors, such as those in cells or sensory organs, to specific stimuli.

Stimulus Intensity

The magnitude of energy present in a stimulus, influencing the strength of the response.

Saturation

In color theory, describes the intensity or purity of a color; a fully saturated color has no addition of white, black, or gray.

Brightness

The perception of how light or dark a color appears; can also refer to the overall intensity of light sources.