Asked on 7 Aug 2018

True or False? Provide an explannation for each true or false question, so I can understand it!

1. Simple interest is based on the time value of money principle.

2. An annuity "A" is a reoccuring cash fow at the end of a specified time period.

3. The cost of labor to produce a product is a "variable" cost.

4. The effective annual interest rate in continuous compounding is equal to the nominal annual interest rate.

Answered on 7 Aug 2018

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