Question
If an investment earns 12% annually, A. an equivalent monthly investment would have to earn a higher equivalent nominal rate to yield the same return.
- If an investment earns 12% annually,
A. an equivalent monthly investment would have to earn a higher equivalent nominal rate to yield the same return.
B. an equivalent monthly investment would have to earn a lower equivalent nominal rate to yield the same return.
C. an equivalent monthly investment would have to earn the same equivalent nominal rate to yield the same return.
D. a relation cannot be determined between a monthly and annual investment.
- Which of the following characterizes the components of the constant payment mortgage (CPM) payment over the life of the loan?
|
| Interest | Amortization | Payment |
| A. | Decreasing | Decreasing | Decreasing |
| B. | Increasing | Decreasing | Constant |
| C. | Decreasing | Increasing | Constant |
| D. | Constant | Constant | Constant |
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Corporate Finance Principles And Practice
Authors: Denzil Watson, Tony Head
1st Edition
0273630083, 978-0273630081
