Which of the Following Statements Is CORRECT,assuming Positive Interest Rates

question 32

Multiple Choice

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

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

Comprehend the significance of Puritan values and religious beliefs in shaping the New England colonies.

Analyze the role of religion in the social and political life of seventeenth-century New England.

Identify the reasons that motivated Puritan emigration to New England and their impact on colonial society.

Understand the concepts of liberty and authority within Puritan society and governance.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in evaluating investment opportunities.

Supply and Demand

An economic model explaining how the price and quantity of goods and services are determined in a market.

Rent

A periodic payment made for the use of land or a building to the owner by the tenant.

Wages

Payments made to workers for their labor, typically calculated on an hourly, daily, or piecework basis.