Which of the following is NOT a true statement?
A) Present values and discount rates move in the opposite directions from one another.
B) On monthly compounded loans, the EAR will exceed the APR.
C) Compounding essentially means earning interest on interest.
D) Future values increase with increases in interest rates.
E) All else the same, the longer the term of a loan the lower will be the total interest you pay on it.
Correct Answer:
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