Which of the Following Statements Is CORRECT

question 64

Multiple Choice

Which of the following statements is CORRECT?

• A) An investment that has a nominal rate of 6% with semiannual payments will have an effective rate that is smaller than 6%.
• B) The present value of a 3-year, $150 ordinary annuity will exceed the present value of a 3-year, $150 annuity due.
• C) If a loan has a nominal annual rate of 7%, then the effective rate will never be less than 7%.
• D) If a loan or investment has annual payments, then the effective, periodic, and nominal rates of interest will all be different.
• E) The proportion of the payment that goes toward interest on a fully amortized loan increases over time.

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Definitions:

Neurocognitive Disorders

A category of mental health disorders that primarily affect cognitive abilities including learning, memory, perception, and problem-solving.

Pseudo-dementia

A condition that mimics the symptoms of dementia but is actually caused by other psychiatric disorders, such as depression.

Cortical Degeneration

It refers to the progressive loss of brain cells in the cerebral cortex, a part of the brain that plays key roles in memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Depressive Disorders

A group of mental health conditions characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.