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1. An increase in the frequency of compounding will increase the future value of an investment if all other factors are held constant.

True

False

2. All streams of cash flows are called annuities.

True

False

3. An amortized or installment loan represents an annuity whose cash flows consist of the loan payments.

True

False

4. An annuity due will have a smaller present value than a normal annuity.

True

False

Financial Management, Finance

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