1.) Future value is the amount that must be invested today at a specific interest rate to receive a particular amount at some future date.

True or False

2.) The present value of an ordinary annuity is the amount that equal payments made at the end of successive equal periods is worth today.

True or False

3.) Compounding interest assumes the interest on an investment is reinvested.

True or False

4.) Annuities may provide equal amounts to an investor at fixed periods of time over the life of an investment.

True or False

5.) The rate of interest is usually expressed as an annual rate.

True or False