1. To compare the economic values of several alternative payments, can any point in time be chosen as the focal date?
2. In compound interest calculations, the compounding factor (or accumulation factor) depends on which 2 of the 3 following factors: the principal, the periodic rate of interest, the number of compounding periods in the term?
3. In the present and future value formulas for constant growth annuities, if k=0, then are the formulas the same as those for ordinary annuities?
4. At the same nominal rate of interest, does a semiannually compounded rate have a lower or higher effective rate than a monthly compounded rate?
5. Can the size of size of regular payments of a mortgage be changed?
6. If a loan has a 10-year amortization period with a fixed interest rate, will the interest paid in the eighth year be equal to the interest paid in the fifth year?
7. Which type of annuity does the monthly payments of a rental agreement form?
8. With respect to when the balance will be paid off, does it matter when, in the term, a lump sum payment is made on the principal of a mortgage?
9. Does skipping the 10th mortgage payment have the same consequence to lengthening the amortization period as skipping the 35th payment?
10. Can loan payments form either a general annuity or a simple annuity?

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1 Yes any period of time can be selected as the focal date 2 Yes the compounding factor depends upon ... View the full answer