Which of the Following Statements Is Most Correct

question 59

Multiple Choice

Which of the following statements is most correct?

• A) The first payment under a 3-year,annual payment,amortized loan for $1,000 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 semiannual 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 $100 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:

Family Planning

The practice of controlling the number of children in a family and the intervals between their births, particularly by means of contraception or voluntary sterilization.

India

A country in South Asia, known for its diverse culture, history, and rapidly growing economy, as well as its challenges with environmental pollution and conservation.

Bureaucratic Inefficiency

describes the lack of efficiency within government organizations or large corporations, often due to complex procedures, redundant tasks, and mismanagement.

Poor Planning

Poor Planning refers to the lack of effective preparation and foresight in projects or strategies, leading to suboptimal outcomes and inefficiencies.