Mathematics · Financial Mathematics

Analyze the following statements regarding financial mathematics and banking: Statement 1: The Present Value of future cash flows decreases as the discount rate increases. Statement 2: For an ordinary annuity, if the payment and compounding frequencies are identical, the standard annuity formula applies directly. Statement 3: If compounding frequency exceeds payment frequency, the effective interest rate per payment period must be adjusted. Statement 4: An annuity due has a higher present value than an ordinary annuity of identical parameters. Statement 5: The principal portion of a constant payment loan is the total payment minus the period's interest. Statement 6: Under the Rule of 72, if an investment doubles in 10 years, the approximate rate is 7.2%. Statement 7: The future value of a single sum exceeds its present value at a positive interest rate. Select the correct option characterizing these statements.