Which of the Following Statements Is NOT Correct

question 21

Multiple Choice

Which of the following statements is NOT correct?

• A)The present value of a 3-year, $150 annuity due will exceed the present value of a 3-year, $150 ordinary annuity.
• B)If a loan has a nominal annual rate of 8%, then the effective rate can never be less than 8%.
• C)If a loan or investment has annual payments, then the effective, periodic, and nominal rates of interest will all be the same.
• D)An investment that has a nominal rate of 6% with semiannual payments will have an effective rate that is less than 6%.

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Definitions:

Hierarchy of Aims

A structured arrangement of objectives and goals of an organization or project, ordered by their priority or level of importance.

Means-ends Fashion

An approach to problem-solving that starts with a desired outcome and works backward to find the methods to achieve it.

Good Planning

The process of setting objectives, determining strategies, and outlining tasks and schedules to accomplish the goals efficiently and effectively.

Scenario Planning

A strategic planning method used to make flexible long-term plans based on the systematic examination of future potential events and their impacts.