Which of the Following Statements Is CORRECT

question 26

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:

Civil Liberties

Fundamental rights and freedoms protected from infringement by the government, such as free speech and privacy.

Communists

Refers to individuals who support or are members of a political ideology advocating for a classless society, primarily based on the theories of Karl Marx and Friedrich Engels.

New Coalition

A political or strategic agreement for cooperation among different political parties, factions, or interest groups.

Congress

The legislative branch of the United States federal government, consisting of two houses: the Senate and the House of Representatives.