1. (TRUE or FALSE?) Nominal rate of interest is an interest rate determined in the absence of inflation.

2. (TRUE or FALSE?) The depreciation schedule provides principal, interest, and unpaid principal balance for each month.

3. Which of the following statements is correct?

a. All the answers are correct.

b. The lower the interest rate, the faster the value of an investment will grow, and the larger the amount of money that will accumulate over time.

c. The higher the interest rate, the faster the investment will grow.

d. Any number of changes that are observed over time in the physical and social sciences unfortunately do not follow a compound growth rate pattern and the future value formula cannot be used in calculating these growth rates.

e. A dollar today is worth less than a dollar received in the future.