Which of the Following Statements Is CORRECT, Assuming Positive Interest

question 111

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 greater than its effective annual rate.
• E) If an investment pays 10% interest, compounded quarterly, its effective annual rate will be greater than 10%.

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Definitions:

False Status Reports

Misleading or inaccurate updates that do not truthfully reflect the current state or progress of a project or activity.

Safety Standards

Set of guidelines and regulations designed to minimize risk and ensure the well-being of individuals in various environments and industries.

Gantt Charts

Visual tools used in project management to represent the timeline of tasks or activities alongside their start and end dates.

Project Organization

A structure designed to facilitate the coordination and implementation of project activities, ensuring that project goals are met efficiently.