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.

Question

Quizplus · Accepted Answer

Dividing the annual payment by 12 does not accurately calculate the monthly payment for a mortgage loan because it does not account for the interest compounding effect.

As Applied to Mortgage Loans,which of the Following Statements Is