As applied to mortgage loans, which of the following statements is FALSE?
A) Advertised rates are annual percentage rates.
B) A spreadsheet uses the periodic interest rate, not the annual percentage rate.
C) By increasing the number of payments per year you increase your effective borrowing rate.
D) You can find a monthly payment by dividing the annual payment by 12.
Answer: D
Explanation: D) A mortgage problem is VERY SIMILAR to a future value problem with an annuity.
Business
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