# Answer the True or False Questions Based on Interests

**Question description**

# True or False

- True or false. When simple interest is used, the accumulated amount is a linear function of time.
- True or false. Compound interest that is converted once a year is the same as simple interest.
- True or false. If interest is compounded annually, then the effective rate of interest is the same as the nominal rate of interest.
- True or false. The present value is always smaller than the future value.
- True or false. The future value of an annuity can be found by adding together all the payments that are paid into an account.
- True or false. The periodic payment
*R*where and*P*is the loan amount and*i*is the interest per period that will amortize the loan at the end of the term comprising*n*periods. - True or false. A sinking fund is the accumulated amount to be realized at some future date (the end of the term) when a fixed number of periodic payments are paid into an account earning interest at the rate of
*i*per period.

## Tutor Answer

**Quality**

**Communication**

**On Time**

**Value**

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors