Which of the Following Statements Is CORRECT

question 30

Multiple Choice

Which of the following statements is CORRECT?

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

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Definitions:

Change Leader

Someone who takes initiative in trying to change the behaviour of another person or within a social system.

Behavior Pattern

A recurrent way of acting by an individual or group toward a given object or in a specific situation.

Biculturalism

The ability of an individual to identify and integrate aspects of two distinct cultures, often leading to enhanced social adaptability and understanding.

Minority Cultures

Groups within a larger society that maintain unique cultural identities, often underrepresented and having different ethnic, linguistic, or religious characteristics from the dominant group.