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:

Cervix

Narrow end of the uterus, which leads into the vagina.

Labor

The process of childbirth, starting from the onset of contractions to the delivery of the baby and placenta.

Dilation

The process of widening, stretching, or expanding.

Fetal Heartbeat

The heart rate of a fetus, which can typically be detected by ultrasound as early as 5-6 weeks of pregnancy.