Which of the Following Statements Is Most Correct

question 60

Multiple Choice

Which of the following statements is most correct?

• A) The first payment under a 3-year, annual payment, amortised loan for R1,000 will include a smaller percentage (or fraction) of interest if the interest rate is 5 percent than if it is 10 percent.
• B) If you are lending money, then, based on effective interest rates, you should prefer to lend at a 10 percent simple, or quoted, rate but with semi-annual payments, rather than at a 10.1 percent simple rate with annual payments.However, as a borrower you should prefer the annual payment loan.
• C) The value of a perpetuity (say for R100 per year) will approach infinity as the interest rate used to evaluate the perpetuity approaches zero.
• D) Statements a, b, and c are all true.
• E) Only statements b and c are true.

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Definitions:

Campanile

A bell tower of a church, usually, but not always, free-standing.

Santa Maria

A term that can refer to various churches, ships, and places, often associated with Christian contexts or explorations, notably the flagship of Christopher Columbus on his first voyage to the New World.

Andrea Pisano

An Italian sculptor and architect, active in the 14th century, renowned for his work on the Baptistery of San Giovanni in Florence and his contributions to Gothic art.

Christian Virtues

Moral standards and qualities valued in Christianity, such as faith, hope, and charity, guiding ethical behavior and spiritual wellbeing.