t/f

1. When the compou nding peri od is mo nthly, the fut ure valu e is obta ined by mult iplying the per sent val ue with the (1+r/m) raise d to the nm"

2. If the sim ple ra te is 11% comp ounded annually, the effe ctive an nual rate is 11%

3.The fut ure va lue of an inve stment inc reases as the nu mber of pe rio ds incre ases

4.The pr esent valu e of an ann uity d ue is al ways hig her th an the pr esent v alue of an ord inary annu ity.

5.The si mple ra te, the a nnual perce ntage ra te and the effe ctive an nual rat e ar e al ways eq ual.