Which of the following statements related to interest rates are correct? I. Annu
ID: 2666481 • Letter: W
Question
Which of the following statements related to interest rates are correct?I. Annual interest rates consider the effect of interest earned on reinvested interest payments.
II. When comparing loans, you should compare the effective annual rates.
III. Lenders are required by law to disclose the effective annual rate of a loan to prospective borrowers.
IV. Annual and effective interest rates are equal when interest is compounded annually.
Question 4 options:
1) II and III only
2) I and II only
3) II and IV only
4) II, III, and IV only
5) I, II, and III only
Explanation / Answer
the answer is two and three are true statements
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