True or False:

1. The annual percentage rate is the simple percentage cost of all finance charges over the life of the loan on an annual basis.
2. With a discount method single-payment loan, the entire interest charge is subtracted from the principal before you receive the money, and at maturity you repay the principal.
3. The APR is lower when money is lent under the discount method than when it is lent under the simple interest method.
4. Amortization refers to the process in which a large proportion of the early payments of an installment loan goes to cover principal, and the later payments have a larger proportion going towards the payment of interest.
5. Life insurance and health insurance are designed to transfer the catastrophic risk you can't afford to keep onto the insurance companies.