Which one of the following statements concerning the annual percentage rate and effective annual rate is correct? O The effective annual rate is lower than the annual percentage rate when an interest rate is compounded monthly The rate of interest you actually pay on a loan is called the annual percentage rate. The effective annual rate considers the effects of compounding. The effective annual rate equals the annual percentage rate when the rate on an account is designated as simple interest O When firms advertise the annual percentage rate they are violating lending laws. Question 2: (1 Point) Given a fixed stream of monthly income the: O Present value will decrease as the time period decreases. Future value will increase as the interest rate decreases. Future value will increase if payments are made at the end of the period rather than the beginnning. Present value will decrease as the interest rate decreases. Future value will decrease as the time period increases