QUESTION 16 Which of the following statements is most correct? All the A 5-year $100 annuity due will have a higher O a statements are ob present value than a 5-year $100 ordinary annuity. If an investment pays 10 percent interest A 15-year mortgage will have larger monthly payments Oc.compounded annually, its effective rate will also be O d. than a 30-year mortgage of the same amount and same 10 percent. interest rate. correst QUESTION 17 Consider a series of three payments of $2.000, $3,000, and $3,500 that occur at t= 1,t = 2, and t = 4, respectively. Let the annual, annually compounded interest rate equal 5%. What is the time value of the stream att = 5 years? $9.579 $9.975 $6,346 $8.900 O a OC. QUESTION 18 For a given nominal annual rate the higher the number of compounding intervals, the higher the corresponding effective rate. True False QUESTION 19 What is the PV of a 6-year annuity due whose payments grow at 2%, if the first payment is $3.000, the interest rate is 8% and it is annually compounded 0 a $15.678 6. $16.800 O $$14,516 O d. $10.650 QUESTION 20 If an investor uses the absolute dollar return as a measure of performance, he would be ignoring the size of the investment True False