If $50,000 to be paid to you in five equal payments of $10,000 at the end of each of the next five years, and the discount rate is 10%. The present value is $37,907.87.

True

False

The effective annual rate is always greater than or equal to the simple rate as a result of compounding effects.

True

False

The greater the number of compounding periods within a year, the greater the present value of a given lump sum to be received at maturity.

True

False