i will rate up

5. Which of the following statements concerning the effective annual rate are correct? I. When borrowing and choosing which loan to accept, you should select the offer with the highest effective annual rate. II. The more frequently interest is compounded, the higher the effective annual rate. III. A quoted rate of 6% compounded continuously has a higher effective annual rate than if the rate were compounded daily. IV. When making financial decisions, you should compare effective annual rates rather than annual percentage rates. A. I and II only B. I and IV only C. I, II, and III only D. II, III, and IV only 6. The time value of money concept can be defined as: A. the relationship between the supply and demand of money. B. the relationship between money spent versus money received. C. the relationship between a dollar to be received in the future and a dollar today. D. the relationship of interest rate stated and amount paid. 7. You need some money today and the only friend you have that has any is your 'miserly' friend. He agrees to loan you the money you need, if you make payments of $20 a month for the next six months. In keeping with his reputation, he requires that the first payment be paid today. He also charges you 1.5% interest per month. How much money are you borrowing? A. $113.94 B. $115.65 C. $119.34 D. $119.63