Which of the following statements is FALSE?
A) A dollar received one year from now will be worth more than a dollar received today.
B) On monthly compounding loans, the annual percentage yield will be less than the nominal or quoted rate of interest.
C) Compounding essentially means earning interest on interest on an initial balance.
D) Perpetuities pay an equal payment forever.
Answer: A
You might also like to view...
Which of the following is true of marketing using a direct marketing channel system?
A) Direct mail and catalog sales are more labor-intensive than telemarketing, but are more efficient at customer interaction. B) Using direct salespeople is generally cheaper than using brokers, sales agents, or manufacturer's representatives. C) Telemarketing provides a better opportunity for a sales communication but is more labor intensive and usually more expensive than direct marketing. D) Compared to indirect marketing channel systems, direct marketing channel systems maximize the number of customers that a business can profitably reach. E) Digital marketing channels have a greater customer reach than other channels, but are also more expensive.
Which of the following need not appear as part of a voluntary bankruptcy petition?
A) A statement that the petitioner's debts exceed his assets B) A list of unsecured creditors C) A statement of the financial affairs of the petitioner D) A list of secured creditors E) A list of property