Which of the following statements is CORRECT?
A. The present value of a 3-year, $150 ordinary annuity will exceed the present value of a 3-year, $150 annuity due.
B. If a loan has a nominal annual rate of 8%, then the effective rate will never be less 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.
E. An investment that has a nominal rate of 6% with semiannual payments will have an effective rate that is smaller than 6%.
Answer: B
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Which of the following items is a measure of a company's ability to collect receivables?
A) inventory turnover ratio B) current ratio C) days' sales in receivables D) account receivable balance
Which of the following statements is false concerning goal programming?
A) The objective function is the main difference between linear programming and goal programming. B) The objective in goal programming is to minimize deviational variables. C) Deviational variables are zero if a goal is completely obtained. D) It is not possible for two goals to have equal priority. E) The priorities of each goal are reflected in the objective function.
A business arrangement in which one party performs a variety of functions on behalf of the other party is:
a. agency. b. subrogation. c. representation. d. None of the above
Which of the following service providers are most likely to use demand-based pricing?
A. Dentists B. Lawyers C. Doctors D. Hair stylists E. Cruise ships