Question
Which of the following statements is most correct? Question 10 options: A.) The absolute value of the first payment under a 3-year, annual payment, amortized
Which of the following statements is most correct? Question 10 options:
A.) The absolute value of the first payment under a 3-year, annual payment, amortized loan will be a larger payment than the third payment.
B.) The first payment under a 3-year, annual payment, amortized loan will include a larger percentage (or fraction) of interest than the third payment.
C.) The present value of a perpetuity (say for $100 per year) will approach infinity as the interest rate used to evaluate the perpetuity approaches infinity.
D.) If you are lending money, you should prefer to lend at a 10 percent quoted rate but with semiannual compounding rather than at a a 10 percent nominal rate with quarterly compounding.
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