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) A mortgage problem is unlike a future value problem with an annuity.

Question

Quizplus · Accepted Answer

A mortgage problem is similar to a future value problem with an annuity, as both involve calculating payments over time with interest.

As Applied to Mortgage Loans, Which of the Following Statements