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TF The payment made each period on an amortized loan is constant, and it consists...

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Accounting

image TF The payment made each period on an amortized loan is constant, and it consists of some interest and some principal. The closer we are to the end of the loan's life, the smaller the percentage of the payment that will be a repayment of principal. T F The value of a five-year annuity is equal to the sum of two perpetuities. One makes its first payment in year 1, and the other makes its first payment in year 6 . T F You are considering two equally risky annuities, each of which pays $1,000 per year for 10 years. Investment ORD is an ordinary annuity, while Investment DUE is an annuity due. The present value of ORD must be less than the present value of DUE, but the future value of ORD must exceed the future value of DUE. TF If the present value of $1 received n years from today at an interest rate of r is 0.621 , then the future value of $1 invested today at an interest rate of r% for n years is $1.610 ? T F The greater the number of compounding periods within a year, then (1) the greater the future value of a lump sum investment at Time 0 and (2) the greater the present value of a given lump sum to be received at some future date

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