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:

Structured Interviews

A formal interview process where all candidates are asked the same predetermined questions in the same order.

Behavioural Interview

A job interview technique where candidates are asked to describe past behavior in specific situations to predict their future performance.

Past Performance

An individual's or organization's previous accomplishments or results, often used as a predictor for future success.

Written Letters

A method of communication involving the sending of messages or information through physically written or printed text.