Which of the Following Statements Is CORRECT, Assuming Positive Interest

Multiple Choice

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

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