Which of the Following Statements Is CORRECT,assuming Positive Interest Rates

question 54

Multiple Choice

Which of the following statements is CORRECT,assuming positive interest rates and holding other things constant?

• A) The present value of a 5-year,$250 annuity due will be lower than the PV of a similar ordinary annuity.
• B) A 30-year,$150,000 amortized mortgage will have larger monthly payments than an otherwise similar 20-year mortgage.
• C) A bank loan's nominal interest rate will always be equal to or less than its effective annual rate.
• D) If an investment pays 10% interest,compounded annually,its effective annual rate will be less than 10%.
• E) 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.

---

Definitions:

Clinician

A healthcare professional involved in the diagnosis and treatment of patients.

Instructional Practices

Methods and techniques used by educators to facilitate learning and enhance student understanding and skills.

Academic Achievement

The extent to which a student, teacher or institution has achieved their short or long-term educational goals.

Middle School

An educational institution serving the transitional period from primary to high school, typically for students aged 11 to 14.