Which of the Following Statements Is CORRECT, Assuming Positive Interest

question 94

Multiple Choice

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

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

Identify and describe the components and function of plant vascular systems.

Understand the chemical composition and functional roles of key plant polymers and molecules.

Describe the growth patterns and lifecycle stages of plants.

Define the structural and functional characteristics of plant organs.

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Definitions:

Ordinary Interest

Interest calculated on the basis of a 360-day year, which is commonly used in calculating interest for loans, mortgages, and bonds.

360-Day Year

An accounting method that simplifies interest calculation by assuming all months have 30 days, resulting in a 360-day year.

Total Amount

The complete sum or quantity of something.

Ordinary Interest

Interest calculated based on a 360-day year, typically used in banking and finance for loans and savings.