Which one of the following statements is correct? Multiple Choice A decrease in a positive discount rate increases the present value. Perpetuities are finite but annuities are not. Pure discount loan requires borrower to repay the money received today in equal principal payments every period during life of the loan. a An amortized loan requires the principal amount to be repaid in only equal amounts every period. Lenders have to disclose the effective annual rates by law and when comparing loans you should compare APR (annual percentage rate). Interest-only loan calls for interest payment each period and no lump sum principle payment