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%.

Differentiate between relational and logical operators.

Recognize syntax errors and correct usage of syntax in control structures.

Identify the role and definition of reserved words in Java.

Understand the workings and implications of conditional (if...else) statements.

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Definitions:

Investment Products

Various types of assets and securities (e.g., stocks, bonds, mutual funds) that individuals can invest in hoping to earn returns.

PCAOB

Public Company Accounting Oversight Board, a nonprofit corporation established by Congress to oversee the audits of public companies to protect investors.

FINRA

The Financial Industry Regulatory Authority, a non-governmental organization that regulates member brokerage firms and exchange markets, ensuring fairness and honesty in the financial industry.

Public Companies

Corporations that have issued securities through an initial public offering (IPO) and are traded on at least one stock exchange or in over-the-counter markets.