Only the annual percentage rate (APR) or some other quoted rate should be used as the discount rate for present or future value calculations.

Question

Quizplus · Accepted Answer

The appropriate discount rate to use for present or future value calculations depends on various factors such as the risk of the investment, inflation, and the opportunity cost of capital. Therefore, only relying on the APR or some other quoted rate may not reflect the true cost of capital and may result in inaccurate calculations.

Only the Annual Percentage Rate (APR) or Some Other Quoted