What statement is CORRECT about compounding and

discounting:

When loans are amortized, periodic payments are equal, but interest

component of the payments increases over time

Extending a loan term from $3$ years to $5$ years will reduce total interest

payment during the life of the loan

When interest rate decreases, the future value $($FV$)$ of a present sum increases

When interest rate increases, the present value $($PV$)$ of a future sum decreases