As Applied to Mortgage Loans,which of the Following Statements Is

question 3

Multiple Choice

As applied to mortgage loans,which of the following statements is FALSE?

• A)Advertised rates are EARs.
• B)A spreadsheet uses the periodic interest rate,not the annual percentage rate.
• C)It is essential to know the compounding periods per year in order to use the TVM equations or determine the actual cost to rent money.
• D)A mortgage problem is an annuity problem.

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Definitions:

Nuts

Hard-shelled seeds of certain plants that are often edible and rich in nutrients, or a slang term to describe someone who is crazy or eccentric.

Demand

Refers to the quantity of a good or service desired by consumers at a given price level and time.

Income

Represents the financial earnings of an individual or enterprise, often quantified on a yearly basis.

Utility Function

An economic model representing how a consumer ranks different bundles of goods based on the level of satisfaction or utility they provide.