Which of the Following Statements Is Correct

question 95

Multiple Choice

Which of the following statements is correct?

• A) A 15-year mortgage will have larger monthly payments than a 30-year mortgage.
• B) If an account earns 3 percent per year compounded annually, then it also has an effective annual rate (EAR) of 3 percent.
• C) The present value of a $500 perpetuity is greater if the interest rate is higher.
• D) The first, second, and third statements above are correct.
• E) Only the first and second, statements above are correct.

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Definitions:

Diaspora

Diaspora refers to the dispersion of any people from their original homeland to multiple locations around the world, often maintaining cultural or social connections with their place of origin.

Grand Settlement of 1701

A historical agreement, also known as the Great Peace of Montreal, between New France and 39 First Nations of North America.

Presidio

A fortified base established by the Spanish in colonial times, primarily in the Americas, to protect territories and missions from foreign encroachments and native uprisings.

Yamasee War

A conflict between British settlers of South Carolina and various Native American tribes, including the Yamasee, during 1715-1717.