Which of the Following Statements Is True Regarding the Time

question 63

Multiple Choice

Which of the following statements is true regarding the time value of money?

• A)Compound interest will produce equal amounts of interest each period on a fixed deposit.
• B)Earning simple interest is more beneficial than earning compound interest.
• C)When making a purchase,it is better to make payment as soon as possible.
• D)It is better to receive $1 now than a year from now.

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Definitions:

Oral Contract

An agreement made through spoken words rather than written documentation, which can be legally binding in some cases.

Statute of Frauds

The Statute of Frauds is a legal doctrine that requires certain types of contracts to be in writing and signed by the parties involved to be enforceable.

Oral Evidence

Testimony given by a witness in court or during a legal proceeding that is spoken and not written.

Written Contract

A legally binding agreement between two or more parties that is put in writing and signed by the parties.