Which of the Following Statements Is NOT Correct

question 21

Multiple Choice

Which of the following statements is NOT correct?

• A)The present value of a 3-year, $150 annuity due will exceed the present value of a 3-year, $150 ordinary annuity.
• B)If a loan has a nominal annual rate of 8%, then the effective rate can never be less than 8%.
• C)If a loan or investment has annual payments, then the effective, periodic, and nominal rates of interest will all be the same.
• D)An investment that has a nominal rate of 6% with semiannual payments will have an effective rate that is less than 6%.

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Definitions:

Poor People

Individuals or groups living below the poverty line, often struggling with lack of financial resources, access to basic needs, and opportunities.

Official Definition

An authorized or formally recognized explanation or meaning of a term or concept.

Intergenerational

Pertaining to relationships or interaction between different generations.

Occupational Mobility

The ability of individuals to move between different job positions or career paths, often as a measure of socioeconomic flexibility and opportunities.