Which of the following statements is TRUE?
A)On many calculators the TVM key for interest is I/Y; this is Interest per Year,or the EAR rate.
B)On many calculators the TVM key for interest is Y/I; this is Interest per Year,or the APR rate.
C)On many calculators the TVM key for interest is I/Y; this is Interest per Year,or the APR rate.
D)On many calculators the TVM key for a period is I/Y.

Question

Quizplus · Accepted Answer

The TVM (Time Value of Money) key for interest on many calculators is labeled as I/Y, which stands for Interest per Year, and it typically refers to the APR (Annual Percentage Rate) rather than the EAR (Effective Annual Rate).

Which of the Following Statements Is TRUE