Mark each statement true (T) or false (F), and fill in the blanks in Part (e).(all sections)
a. The nominal interest rate will always be less than the effective interest rate when r = 10% and M = ∞.
b. 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. $1,791 in 10 years is equivalent to $900 now if the nominal interest rate is 8% compounded semiannually.
d. 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) = (———).