Which One of the Following Statements Is NOT True

question 22

Multiple Choice

Which one of the following statements is NOT true?

• A) The correct way to annualize an interest rate is to compute the effective annual interest rate (EAR).
• B) The APR is the annualized interest rate using simple interest.
• C) The correct way to annualize an interest rate is to compute the annual percentage rate (APR).
• D) You can find the interest rate per period by dividing the quoted annual rate by the number of compounding periods.

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Definitions:

Brokers

An intermediary who represents clients who buy or sell specialized goods or seasonal products.

Wholesalers

An intermediary who buys products in bulk from producers and resells them to other wholesalers or to retailers.

Retailers

An intermediary who sells products to the ultimate consumer.

Location Type

The classification of a place based on its characteristics, purpose, or usage, such as residential, commercial, or industrial.