Which of the following statements is CORRECT, assuming positive interest rates and holding other things constant?

A. The present value of a 5-year, $250 annuity due will be lower than the PV of a similar ordinary annuity.
B. A 30-year, $150,000 amortized mortgage will have larger monthly payments than an otherwise similar 20-year mortgage.
C. A bank loan's nominal interest rate will always be equal to or greater than its effective annual rate.
D. If an investment pays 10% interest, compounded quarterly, its effective annual rate will be greater than 10%.
E. Banks A and B offer the same nominal annual rate of interest, but A pays interest quarterly and B pays semiannually. Deposits in Bank B will provide the higher future value if you leave your funds on deposit.


Answer: D

Business

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Costs for which of the following activities would not be included as part of research and development (R&D) costs?

A) ?testing in search for or evaluation of product or process alternatives. B) ?adaptation of an existing capability to a particular requirement or customer's need as part of a continuing commercial activity. C) searching for applications of new research findings or of other knowledge?. D) ?design, construction, and testing or preproduction prototypes and models.

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Which of the following is not a base against which profits are measured?

a. Owners' equity b. Owners' and creditors' funds provided c. Intangibles d. Revenues e. Productive assets

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In questionnaire design, a question such as "Do you like the diner's food and service?"

A. asks two questions at once. B. is complex and something respondents may be unfamiliar with. C. steers respondents to a particular response. D. is a question that respondents are reluctant to answer because the information is sensitive. E. is a question that respondents cannot easily or accurately answer.

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According to Ellis (2009), a robust learning management system should be able to consolidate training initiatives on a scalable Web-based platform

Indicate whether the statement is true or false

Business