Question: For the statements below, answer whether it is TRUE or FALSE. Explain all your answers. 1. Present value and discount rates are inversely proportional 2.

For the statements below, answer whether it is TRUE or FALSE.

For the statements below, answer whether it is TRUE or FALSE. Explain all your answers. 1. Present value and discount rates are inversely proportional 2. On monthly compounded loans, the Effective Annual Rate will exceed the Stated Annual Rate. 3. All else equal, the longer the term of a loan, the lower will be the total interest paid. 4. The Stated Annual Rate adjusts for the frequency of compounding. 5. As long as interest is compounded more than once a year, the Stated Annual Rate will always be more than the Effective Rate

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