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Which one of the following statements concerning interest rates is correct? Multiple Choice An effective annual rate is the rate that applies if interest were
Which one of the following statements concerning interest rates is correct? Multiple Choice An effective annual rate is the rate that applies if interest were charged annually. For any positive rate of interest, the effective annual rate will always exceed the annual percentage rate. Banks are most apt to prefer more frequent compounding on their savings accounts. The annual percentage rate increases as the number of compounding periods per year increases. The stated rate is the same as the effective annual rate
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