Steve is offered an investment where for every $1.00 invested today, he will receive $1.10 at the end of each of the next five years. Steve concludes that in five years he will have $1.10 for every $1.00 invested and that this investment will increase his personal value. What is Steve's major error in reasoning when making this decision? O A. He ignores the benefits of consuming the $1.00 today against the benefits of consuming the $1.00 five years from now. OB. He considers that the value of the cash he may have in the future is the same as the value of cash he has today. OC. He ignores the fact that the costs and benefits of the investment are not stated in the same terms. O D. He fails to consider the costs of not consuming the $1.00 today. You are considering purchasing a new home. You will need to borrow $200,000 to purchase the home. A mortgage company offers you a 20-year fixed rate mortgage (240 months) at 6% APR (0.5% month). If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to: O A. $1,146 B. $2,293 OC. $1,433 OD. $2,006 Consider the following investment alternatives: Investment A B D Rate 6.852% 6.6515% 6.7302% 6.7163% Compounding Annual Daily Quarterly Monthly Which alternative offers you the highest effective rate of return? O A. Investment A OB. Investment B OC. Investment C OD. Investment D