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

question 54

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 less than its effective annual rate.
• D) If an investment pays 10% interest,compounded annually,its effective annual rate will be less 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.

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Definitions:

Collagen

A protein that is crucial for maintaining the structure and strength of skin, bones, tendons, and ligaments.

Epithelial Cells

Cells that line the outer surfaces of organs and blood vessels, as well as the inside of hollow organs, functioning as a barrier and involved in absorption and secretion.

Jackson-Pratt (JP) Drain

A closed suction drain that is used in surgery to remove accumulated fluid from a patient's body, reducing the risk of infection and promoting healing.

Hemovac Drain

A closed suction medical device used postoperatively to remove excess blood, fluids, and air from a wound site, promoting healing.