As Applied to Mortgage Loans, Which of the Following Statements

question 7

Multiple Choice

As applied to mortgage loans, which of the following statements is FALSE?

• A) Advertised rates are annual percentage rates.
• B) A spreadsheet uses the periodic interest rate, not the annual percentage rate.
• C) By increasing the number of payments per year you increase your effective borrowing rate.
• D) A mortgage problem is unlike a future value problem with an annuity.

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Definitions:

Potential Energy

The energy stored by an object due to its position in a force field or its condition.

Crest

The peak or highest point of something, often used to describe the comb or tuft of feathers on the head of birds or other features like waves or helmets.

Hill

A naturally raised area of land, smaller than a mountain, with a rounded top.

Catabolic Reaction

A catabolic reaction is a metabolic pathway that breaks down molecules into smaller units, releasing energy.