Which of the Following Statements Is CORRECT,assuming Positive Interest Rates

question 54

Multiple Choice

Which of the following statements is CORRECT,assuming positive interest rates and holding other things constant?

• A) The present value of a 5-year,$250 annuity due will be lower than the PV of a similar ordinary annuity.
• B) A 30-year,$150,000 amortized mortgage will have larger monthly payments than an otherwise similar 20-year mortgage.
• C) A bank loan's nominal interest rate will always be equal to or less than its effective annual rate.
• D) If an investment pays 10% interest,compounded annually,its effective annual rate will be less than 10%.
• E) Banks A and B offer the same nominal annual rate of interest,but A pays interest quarterly and B pays semiannually.Deposits in Bank B will provide the higher future value if you leave your funds on deposit.

---

Definitions:

CTRL

A keyboard key used in combination with other keys to perform special commands or shortcuts.

Slide Transition

An animation effect applied between slides during a presentation to make the shift visually engaging.

Animation Effect

Visual or multimedia effects applied to objects or elements in presentations and documents to make them appear, disappear, move, or change in a dynamic way.

Slide Show

A presentation of a series of images or slides on a screen, often with synchronized music or narration.