Which of the Following Statements Is CORRECT

question 1

Multiple Choice

Which of the following statements is CORRECT?

• A) an investment that has a nominal rate of 6% with semiannual payments will have an effective rate that is smaller than 6%.
• B) the present value of a 3-year, $150 ordinary annuity will exceed the present value of a 3-year, $150 annuity due.
• C) if a loan has a nominal annual rate of 7%, then the effective rate will never be less than 7%.
• D) if a loan or investment has annual payments, then the effective, periodic, and nominal rates of interest will all be different.
• E) the proportion of the payment that goes toward interest on a fully amortized loan increases over time.

---

Definitions:

Strokes

A medical condition where poor blood flow to the brain results in cell death, leading to various degrees of impairment or disability.

Psychoanalytic Perspective

A theory developed by Freud emphasizing unconscious processes and conflicts as the primary drivers of human behavior and psychological disorders.

Irrational Fear

An exaggerated or unfounded fear towards objects, activities, or situations that poses little to no actual danger.

Repressed Childhood

A psychological condition wherein memories of early childhood, often traumatic, are unconsciously blocked from conscious recollection.