Direction Please read the questions carefully. Please draw the cash flow diagrams and explain the steps that you are going to approach to solve the problems then solve the problem. Show the details in solving the problems. Please write legible hand writing, otherwise there is a deduction from your grade 10 points. Missing Cash Flow Diagram is deductible points equal to 20% of the total points for each question. Q1) Select True or False of the Following Statements (30 points 5 each) $1,791 10 years from now is equivalent to $900 now if the interest rate equals 8% per year. T F Suppose that a lump sum of $1,000 is in vested at-10% for eight years. The future equivalent is greater for daily compounding than it is for continuous compounding. T F For a fixed amoant, f dollars, that is received at EOY N, the "A equivalent" increases as the interest rate increases. T F For a specified value of F at EOY N, P at time zero will be larger for r-10% per year than it will be for r T F 10% per year, compounded monthly The nominal interest rate will always be less than the effective interest rate when r and M is number of interest compound-oo, 10% T F Acertain loan involves monthly repayments of si 85 over a 24-month period irr-1096 per year, more than half of the principal is still owed on this loan after the 10th monthly payment is made. TF Q2) (20 Points -10 points each for A and B) each year for 12 years if you wish to withdraw 8% per year. present equivalent of $18.000 to be received in 15 years when the interest A) How much money should be deposited $309 each year for five years, beginning at the end of the 14th year? Let i B) What is the rte is 10% per year