Business, 09.07.2019 23:10 nscarlisleh13

Which of the following statements is correct, assuming positive interest rates and holding other things constant? a. a bank loan's nominal interest rate will always be equal to or greater than its effective annual rate. b. a 30-year, $150,000 amortized mortgage will have larger monthly payments than an otherwise similar 20-year mortgage. c. if an investment pays 10% interest, compounded quarterly, its effective annual rate will be greater than 10%. d. the present value of a 5-year, $250 annuity due will be lower than the pv of a similar ordinary annuity. 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.

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Which of the following statements is correct, assuming positive interest rates and holding other thi...

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