Concept Check Answers to odd-numbered problems are in the textbook (page A-7). Explain why each statement is True or False: 1. The present value of an annuity is the amount of money that would have to be deposited in one lump sum today to produce the exact same balance at the end of a specified time. 2. A loan is amortized if both the principal and interest are paid by a sequence of equal periodic payments. 3. When a loan is amortized, the interest is a smaller portion of the payment earlier in the mortgage than later. 4. When equal payments are made to amortize a loan, the balance decreases in equal steps.