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Which Statement Is FALSE Concerning the Time Value of Money

Question 71

Multiple Choice

Which statement is FALSE concerning the time value of money?


A) The greater the compound frequency,the greater the EAR.
B) The EAR is always greater than the APR.
C) An account that pays simple interest will have a lower FV than an account that pays compound interest.
D) The stated interest rate is also referred to as the APR.

Correct Answer:

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