The simple interest rate method (for the same amount and time as the compounding interest rate method):
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Question:
The simple interest rate method (for the same amount and time as the compounding interest rate method):
a. usually gives a higher present value than the compounding interest rate method (only in some cases it is in the other way)
b. always gives a lower present value than the compounding interest rate method.
c. always gives a higher present value than the compounding interest rate method.
d. can not be compared with the compounding interest rate method results.
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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