Which of the Following Statements Is CORRECT, Assuming Positive Interest

question 94

Multiple Choice

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

• A) 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.
• B) The present value of a 5-year, $250 annuity due will be lower than the PV of a similar ordinary annuity.
• C) A 30-year, $150,000 amortized mortgage will have larger monthly payments than an otherwise similar 20-year mortgage.
• D) A bank loan's nominal interest rate will always be equal to or less than its effective annual rate.
• E) If an investment pays 10% interest, compounded annually, its effective annual rate will be less than 10%.

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Definitions:

Constructive Actions

Behaviors or actions taken with the intention of creating positive outcomes or contributing to problem-solving.

Media Violence

Exposure to violent images and content in media, and its potential effects on aggressive behavior and attitudes.

Violence-Viewing Effect

The impact that exposure to violence in media can have on viewers, often leading to increased aggression or desensitization to violence.

Aggression

Any physical or verbal behavior intended to harm someone physically or emotionally.