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LUCKY_DIMON [66]
2 years ago
12

When calculating the effective rate of a loan, which statement or statements must be true if n is greater than 1? I. The length

of the loan is greater than a single year. II. The effective rate will exceed the nominal rate. III. The interest will be compounded monthly. A. II only b. II and III c. I and III d. I, II, and III.
Business
2 answers:
solniwko [45]2 years ago
8 0

When the individual calculates the effective rate of the loan, the most appropriate statement is the effective rate will exceed the nominal rate.

<h3>What is effective annual rate?</h3>

The effective annual rate (EAR) is the interest rate for the entire year. Interest Charges Interest expense is incurred when a corporation funds itself with debt or capital leases.

Interest appears on the income statement, but it can also be earned on an investment or paid on a loan as a result of compounding interest over time.

It is usually higher than the marginal rate and is used to evaluate different financial products with varying compounding periods - weekly, monthly, yearly, and so on.

When the number of compounding periods is increased, the effective yearly interest rate rises over time.

Therefore, the correct option is A.

Learn more about the effective rates of the loans here:

brainly.com/question/2405320

abruzzese [7]2 years ago
6 0

Answer:

C: II only

Explanation:

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Which of the following statements about the importance of each competitive factors (but especially such highly influential facto
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Question Completion:

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O How much differences in the number of models/styles that companies have in their product lines matter in determining each company's unit sales/market share in a region is not a fixed amount but rather is an amount that varies from *big (when model/style differences are also "big") to "small  

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The statements about the importance of each competitive factors (but especially such highly influential factors as selling prices, S/Q ratings, and number of models/styles offered) in determining company sales volumes and market shares in a particular geographic region which is false is:

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This implies that the following factors drive company sales volumes and market shares in a particular geographic region: competitive effort, differences in the number of models/styles that companies have in their product lines, big company-to-company differences in the number of models/styles offered to buyers in a region, among the other 12 competitive factors.

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