TRUE or FALSE

An investment today of $8,424 at 6% will yield $2,000 per year for the next five years because interest is being earned on principal that is left invested each year. The following tables are available:

Present value of $1:

	4%	5%	6%	7%	8%
5	0.822	0.784	0.747	0.713	0.681
6	0.790	0.746	0.705	0.666	0.630
7	0.760	0.711	0.665	0.623	0.583
8	0.731	0.677	0.627	0.582	0.540
9	0.703	0.645	0.592	0.544	0.500
10	0.676	0.614	0.558	0.508	0.463

Present value of ordinary annuity of $1:

	4%	5%	6%	7%	8%
5	4.452	4.329	4.212	4.100	3.993
6	5.242	5.076	4.917	4.767	4.623
7	6.002	5.786	5.582	5.389	5.206
8	6.733	6.463	6.210	5.971	5.747
9	7.435	7.108	6.802	6.515	6.247
10	8.111	7.722	7.360	7.024	6.710