True or False
1. Annuities are unequal cash flows that go on for a finite period of time.
2. We can determine which “PMT” we’re being asked to solve for by noting what the problem provides in terms of r and n.
3. "When given the annual withdrawals desired during the retirement period, the FVA tells us the amount we should have accumulated by the time we begin the retirement period.
4. Given the amount needed at the beginning of the retirement period, the annual deposits needed during the working period can be found by solving for “PMT” in the FVA formula.
5. “PMT" in the PVA formula tells us the periodic mortgage payments for a fixed-rate fully amortized loan.
6. The principal part of a fixed mortgage loan payment can be found by multiplying the periodic interest rate by the ending balance for a given period.
7. For fixed-rate fully amortized mortgage loans, more of the fixed payment goes towards principal as we approach the end of the loan term.
8. We can find the amount needed to pay off a fixed-rate fully amortized mortgage loan at any point in time by solving for the PV of the remaining payments.