1. An amortized loan is generally structured to provide constant payments each of which contains the same proportions of interest and principal repayment.

True

False

2. An annuity is a series of equal payments separated by equal time intervals.

True

False

3. An annuity is a finite stream of equal payments occurring at regular or irregular time intervals

True

False

4. The future and present value factors are reciprocals. Either amount equation can be used to solve any amount problem.

True

False

5. FV_Fk,n is always greater than 1, whereas PV_Fk,n is always less than –1.

True

False