1. Using approaches used in the text and in class, the effective cost of leasing a vehicle can be lower or higher than the cost of owning the same vehicle. a. True b. False 2. The equity in your home as shown on a personal balance sheet is the difference between the loan balance and the purchase price. a. True b. False 3. When a personal income/expense statement indicates a surplus, this means that net worth has increased. a. True b. False 5. When an individual lists his/her house as an asset on their balance sheet, they should record the: a. actual purchase price. b. cost of construction. c. sale price. d. fair market value. 6. Your investment advisor wants you to purchase an annuity that will pay you $25,000 per year for 10 years. If you require a 7% return, what is the most you should pay for this investment? 7. Amortization of principal with a fixed installment payment involves lower principal portions of payments in the early years of the loan: a. True b. False