Which of the Following Statements Is TRUE

question 107

Multiple Choice

Which of the following statements is TRUE?

• A) If compounding at a positive interest rate,the future value of an annuity due is always less than the future value of an otherwise identical ordinary annuity.
• B) If compounding at a positive interest rate,the future value of an annuity due is always greater than the future value of an otherwise identical ordinary annuity.
• C) If compounding at a positive interest rate,the future value of an ordinary annuity is always greater than the future value of an otherwise identical annuity due.
• D) If compounding at an interest rate of 0%,the future value of an annuity due is always greater than the future value of an otherwise identical ordinary annuity.
• E) None of the above

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Definitions:

Improvements

Enhancements or upgrades made to a property or a product, increasing its value or functionality.

Mortgagees

Banks or other financial institutions that lend money to borrowers (mortgagors) for the purchase of property, holding a lien on the property as security for the repayment of the loan.

Security Interest

A security interest is a legal right granted by a debtor to a creditor over the debtor's property to secure the repayment of a debt.

Financing Statement

A document filed to indicate a security interest in personal property, used to publicize a creditor's right to possible repossession of goods.