An investment carries an interest rate of 8% compounded annually. When using the time value of money functions of a financial calculator, the interest rate is entered as 8, whereas it is entered as 0.08 when using a spreadsheet to make the time value of money calculations.

Answer the following statement true (T) or false (F)


True

The interest rate is entered as a percentage (8 in our example) in the financial calculator, whereas it is entered as a decimal (0.08 in our example) in the spreadsheet. See 4-2: Future Value (FV)

Business

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