1. The payment made each period on an amortized loan is constant, and it consists of some interest and some principal. Which of the following statement is correct?

2. If a bank compounds savings accounts annually, the effective annual rate is greater than the nominal rate. True False

3. The present value of a future cash flow will be greater if we increase the discounted interest rate and compound more frequently. True False

4. A bank loan has annual percentage rate APR = 6%, compounding monthly. What are the nominal annual rate, the periodic rate, and the effective annual rate of the loan, respectively?

Please show work using excel