Part I. (Sentence Correction) All of the following statements are false. Please change the incorrect parts to make them true. DO NOT negate the sentence, unless necessary.
1. All else equal, the higher the interest rate is, the higher the present value (of a lump sum investment) is.
2. Given an interest rate of zero percent, the future value (of a lump sum investment) will always decrease if the investment time period is lengthened.
3. Travis is buying a car and will finance it with a loan that requires monthly payments of $265 for the next four years. His car payments can be an example of perpetuity.
4. Janis just won a scholarship that will pay her $500 a month, starting today and continuing for the next 48 months. The payments will be given every 1st day of the month. Her scholarship is an example of ordinary annuity.