Multiple Choice
Which of the following statements is correct?
A) A 15-year mortgage will have larger monthly payments than a 30-year mortgage.
B) If an account earns 3 percent per year compounded annually, then it also has an effective annual rate (EAR) of 3 percent.
C) The present value of a $500 perpetuity is greater if the interest rate is higher.
D) Statements a, b, and c are correct.
E) Only statements a and b are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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