124. Mark each statement true (T) or false (F), and fill in the blanks in Part (e). (all sections)

a. T F The nominal interest rate will always be less than the effective interest rate when r = 10%

and M =∞.

b. T F A certain loan involves monthly repayments of $185 over a 24- month period. If r = 10%

per year, more than half of the principal is still owed on this loan after the 10th monthly payment is made.

c. T F $1,791 in 10 years is equivalent to $900 now if the nominal interest rate is 8% compounded semiannually.

d. T F On a $200,000 mortgage, a half-point interest rate increase adds about $700 per year to 12 mortgage payments.

e. Fill in the missing interest factor:

i. (P/A, i%,N)(———) = (F/A, i%,N).

ii. (A/G, i%,N)(P/A, i%,N) = (———).