Which of the Following Statements Is CORRECT

question 33

Multiple Choice

Which of the following statements is CORRECT?

• A) The present value of a 3-year,$150 ordinary annuity will exceed the present value of a 3-year,$150 annuity due.
• B) If a loan has a nominal annual rate of 8%,then the effective rate will never be less than 8%.
• C) If a loan or investment has annual payments,then the effective,periodic,and nominal rates of interest will all be different.
• D) The proportion of the payment that goes toward interest on a fully amortized loan increases over time.
• E) An investment that has a nominal rate of 6% with semiannual payments will have an effective rate that is smaller than 6%.

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Definitions:

Divine Command Theory

A philosophical stance arguing that morality is ultimately based on the commands or character of God.

Moral Decisions

Moral decisions involve choosing actions based on ethical principles and values, considering what is right or wrong, good or bad in a given situation.

Critical Thinkers

Individuals who actively question assumptions, evaluate evidence, and assess conclusions logically.

Religion

A system of beliefs and practices related to sacred things that unite followers into a single moral community.