The future value of a lump sum at the end of five years is $500. The nominal interest rate is 10 percent and interest is compounded semiannually. Which of the following statements is most correct?

Question 10 options:

	The present value of the $500 is greater if interest is compounded monthly rather than semiannually.
	The effective annual rate is greater than 10 percent.
	The periodic interest rate will increase if one switches from semi-annual to monthly compounding.
	Both statements b and c are correct.
	All of the statements above are correct