a. QUESTION 16 A type of loan where the principal amount is reduced over the life of the loan by the borrower making regular payments is called a(n): O a multi-period loan. b. amortized loan. o interest-only loan Od net loan c QUESTION 17 Which one of the following is generally valued as a perpetuity? a short-term bond O b. long-term bond Oc common stock Od Canadian consol QUESTION 18 When comparing loans of equal amounts and equal time periods, you should select the loan that has the lowest: a effective annual rate. O b. annual percentage rate. e stated rate d. nominal rate. QUESTION 19 A credit card has an APR of 18 percent and charges interest monthly. The effective annual rate on this account will: O a. be less than 18 percent O b. be less than or equal to 18 percent. Os equal 18 percent d. be greater than 18 percent. QUESTION 20 You can afford car payments of $200 a month for 60 months. The bank will lend you this money at 6 percent annual interest. How much of a car value can you buy today? (Regular Annuity Problem) O a $3,415.11 Ob. 8,545.11 O $10,345.11 O d. $12,545.11 a