Answer the following statements true (T) or false (F)
1. The annual percentage rate (APR) is the nominal rate of interest, found by multiplying the periodic rate by the number of periods in one year.
2. The annual percentage yield (APY) is the effective rate of interest that must be disclosed to customers by banks on their savings products as a result of "truth in savings laws."
3. The effective rate of interest is the contractual rate of interest charged by a lender or promised by a borrower.
4. The effective rate of interest differs from the nominal rate of interest in that it reflects the impact of compounding frequency.
5. For any interest rate and for any period of time, the more frequently interest is compounded, the greater the amount of money that has to be invested today in order to accumulate a given future amount.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
You might also like to view...
List the seven roles of people in a buying center
What will be an ideal response?
All of the following are techniques for handling disagreement signals EXCEPT:
A. let your buyer know you are aware that something upsetting has occurred. B. project acceptance signals. C. temporarily eliminate any pressure on the person to participate in the conversation. D. stop your planned presentation. E. use indirect questions to determine a buyer's attitudes and beliefs.
The first interest payment on a 5-year, 8%, $100,000, fully-amortized loan with annual payments will be less than the last interest payment
Indicate whether the statement is true or false.
Sociotechnical changes affecting a firm adopting new information systems requiring organizational change can be considered
A) organizational adjustments. B) strategic transitions. C) systems alterations. D) business goal transitions. E) sociotechnical transitions.