Consider the TVM equation: A decrease in the interest rate will decrease the future value, other things remaining equal True False QUESTION 5 In two years Boris plans to enroll at Cleese University, a prestigious university in the Pacific Northwest of the USA. If the current tuition is $23,500 per year and is expected to increase at a rate of 6% per year, how much will Boris pay in tuition his first year of school? (His first tuition payment is exactly two years from today.) In his fourth year? (His last tuition payment is exactly 5 years from today) (Rounded to the nearest dollar.) $23,500 and $29,668 $26,405 and $29,668 $26,405 and $31,448 $23,500 and $31,448 QUESTION 6 Your trust fund will pay you $100,000 in six years when you turn 25. A shady financial institution has encouraged you to sign away the rights to your trust fund in exchange for cash today. Would you prefer that the financial institution use a discount rate of 8% or 10% to determine the value of your lump sum payment? Why? Use 8% because the lump sum payment of $62,741 is greater than the 10% discounted value of $55,839. Use 10% because the lump sum payment of $62,741 is greater than the 10% discounted value of $55,839. Use 8% because the lump sum payment of $63,017 is greater than the 10% discounted value of $56,447. Use 10% because the lump sum payment of $63,017 is greater than the 10% discounted value of $56,447