Which of the following statements is false?
A)More frequent compounding results in additional return on the investment.
B)An amortized loan is repaid in equal payment over a specified time period.
C)The effective annual rate is determined by multiplying the interest rate charged per period by the number of periods in a year.
D)Each of the above statements is true.

Question

Quizplus · Accepted Answer

The effective annual rate is calculated by taking into account the effects of compounding, not simply by multiplying the interest rate by the number of periods.

Which of the Following Statements Is False