Which of the Following Statements Is True

question 58

Multiple Choice

Which of the following statements is true?

• A) The future value of an annuity would be greater if funds are invested at the beginning of each period instead of at the end of each period.
• B) An annuity is a series of equal payments that are made, or received, forever.
• C) The effective annual rate (APR) of a loan is higher the less frequently payments are made.
• D) The future value of an annuity would be greater if funds are invested at the end of each period rather than at the beginning of each period.

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Definitions:

Long Run Equilibrium

A state in which all firms in a market are earning normal profit and all inputs can be adjusted, leading to market stability.

Short-run Profit

The excess of revenues over costs within a brief period, not accounting for adjustments in all resource inputs or long-term sustainability.

Double Scoop

A term often associated with serving two scoops of ice cream, sometimes used metaphorically to indicate "an additional amount or bonus."

Sales Per Day

The average number of transactions or units sold by a business over a specified period, typically calculated on a daily basis.