10. Which one of the following statements related to loaninterest rates is correct? The annual percentage rate...
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10. Which one of the following statements related to loaninterest rates is correct?
The annual percentage rate considers the compounding ofinterest. | ||
When comparing loans with different compounding periods youshould compare the effective annual rates. | ||
Lenders are more likely to quote the effective annual rate. | ||
The more frequent the compounding period, the lower theeffective annual rate given a fixed annual percentage rate. |
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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