Which of the Following Statements Is CORRECT

question 61

Multiple Choice

Which of the following statements is CORRECT?

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

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Definitions:

Health-Promoting Behaviors

Actions individuals take to maintain or improve their health and prevent illness.

Symptom Management

The practice of alleviating or controlling the signs and symptoms associated with a disease or disorder, without necessarily addressing the root cause.

Health-Promoting Behaviors

Actions and lifestyle choices that enhance physical and mental health, such as regular exercise, balanced diet, and stress management.

Diagnostic Testing

The process of using medical tests to identify the cause of symptoms and determine a diagnosis.