Which one of these statements related to growing annuities and perpetuities is correct?

Which one of the following statements related to annuities and perpetuities is correct?    A.  An ordinary annuity is worth more than an annuity due given equal annual cash flows for ten years at 7 percent interest, compounded annually. B.  A perpetuity comprised of $100 monthly payments is worth more than an annuity comprised of $100 monthly payments, given an interest rate of 12 percent, compounded monthly. C.  Most loans are a form of a perpetuity. D.  The present value of a perpetuity cannot be computed, but the future value can. E.  Perpetuities are finite but annuities are not. Refer to section 6.2

16.

Which of the following statements related to interest rates are correct? I. Annual interest rates consider the effect of interest earned on reinvested interest payments. II. When comparing loans, you should compare the effective annual rates. III. Lenders are required by law to disclose the effective annual rate of a loan to prospective borrowers. IV. Annual and effective interest rates are equal when interest is compounded annually.    A.  I and II only B.  II and III only C.  II and IV only D.  I, II, and III only E.  II, III, and IV only Refer to section 6.3

17.

Which one of the following statements concerning interest rates is correct?    A.  Savers would prefer annual compounding over monthly compounding. B.  The effective annual rate decreases as the number of compounding periods per year increases. C.  The effective annual rate equals the annual percentage rate when interest is compounded annually. D.  Borrowers would prefer monthly compounding over annual compounding. E.  For any positive rate of interest, the effective annual rate will always exceed the annual percentage rate. Refer to section 6.3

18.

Which one of these statements related to growing annuities and perpetuities is correct?    A.  The cash flow used in the growing annuity formula is the initial cash flow at time zero. B.  Growth rates cannot be applied to perpetuities if you wish to compute the present value. C.  The future value of an annuity will decrease if the growth rate is increased. D.  An increase in the rate of growth will decrease the present value of an annuity. E.  The present value of a growing perpetuity will decrease if the discount rate is increased. Refer to section 6.2