Which of the Following Statements Is CORRECT

question 34

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.

---

Definitions:

Mental Road Map

A personal or conceptual plan or strategy that guides an individual’s decisions and actions towards achieving specific goals.

Team Problems

Issues and challenges that arise within a team setting, often requiring collaborative efforts for resolution.

Team Leadership

The practice of leading a team effectively by motivating members, coordinating efforts, and ensuring the team works towards common objectives.

Monitoring Function

The process of continuously observing and evaluating performance or progress to ensure goals are being met and to identify any need for corrective action.