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Which of the following statements is CORRECT? a. The present value of a 3-year, $150 annuity due will exceed the present value of a 3-year,

Which of the following statements is CORRECT?

a.

The present value of a 3-year, $150 annuity due will exceed the present value of a 3-year, $150 ordinary annuity.

b.

If a loan has a nominal annual rate of 8%, then the effective rate can never be greater than 8%.

c.

If a loan or investment has annual payments, then the effective, periodic, and nominal rates of interest will all be different.

d.

The proportion of the payment that goes toward interest on a fully amortized loan increases over time.

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