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Given positive and fixed interest rates, which of the following statements concerning perpetuities and annuities is correct? present value of $100 growing perpetuity is less
Given positive and fixed interest rates, which of the following statements concerning perpetuities and annuities is correct? present value of $100 growing perpetuity is less than present value of a $100 level perpetuity. It depends on the interest rate. present value of $100 delayed perpetuity is greater than present value of $100 perpetuity. present value of $100, 200 year annuity is greater than present value of $100 perpetuity. present value of a$100 growing perpetuity is greater than present value of a $100 level (fixed) perpetuity. QUESTION 5 In a typical loan amortization schedule, with positive interest rates, the dollar amount of interest paid each period (interest portion of the payment): it depends on the interest rate increases with each payment decreases with each payment it depends on the length of the loan paymens does not change with each payment
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