Q12:Answer this question based on the following 3 statements:

1. An ordinary annuity has a greater present value than an annuity due if they both have the same periodic payment, discount rate, and time period

2. as the term of mortgages increase, holding interest rates constant, the monthly payments will increase

3. A commuter taking the train to go to work instead of driving is a good example of opportunity cost

A) Only 1 is correct

B) Both 2 and 3 are correct

C) Both 1 and 3 are correct

D) Only 3 is correct

E) Only 2 is correct