Help with questions 3 and 4

3. Which of the following statement(s) is/are true? L. When a loan is amortized, a relatively high percentage of the payment goes to reduce the outstanding principal in the early years, and the principal repayment's percentage declines in the loan's later years. IL. If a bank compounds savings accounts quarterly, the nominal rate will exceed the effective annual rate. III. The present value of a future sum decreases as either the discount rate or the number of periods per year increases, other things held constant. a. Ionly b. II only c. IlI only d. I& III only e. None of the above choices 4. Which of the following statement(s) is/are true? I. In finance, the higher the risk, the higher the security's required return, other things held constant. IL. If country A is more impatient in consumptions than country B then the nominal interest rate in country B will be higher than the nominal interest rate in country A. III. Other things held constant, the higher the expected inflation, the higher the nominal interest rate. a. Ionly b. l only c. IlI only d. e. All of the above None of the above choices