Which of the following statements is correct?

Except in situations where compounding occurs annually, the periodic interest rate exceeds the simple interest rate.

d. Assume that compounding occurs quarterly, that the simple interest rate is 8 percent, and that you need to find the present value of $1,000 due 10 months from today. You could get the correct answer by discounting the $1,000 at 8.2432 percent for 10/12ths of a year.