1.
award:
10 out of
10 points
MC Qu. 10 Many people who want to start investing for their future want to...
Many people who want to start investing for their future want to start today which implies an
annuity stream that is paid at the beginning of the period. Beginningofperiod cash flows are
referred to as
perpetuities.
present values.
ordinary annuities.
annuities due.
2.
award:
10 out of
10 points
MC Qu. 11 To compute the present or future value of an annuity due, one co...
To compute the present or future value of an annuity due, one computes the value of an ordinary
annuity and then
divides it by (1 +
i
).
divides it by (1 
i
).
multiplies it by (1 
i
).
multiplies it by (1 +
i
).
3.
award:
10 out of
10 points
MC Qu. 12 When computing the future value of an annuity, the higher the co...
When computing the future value of an annuity, the higher the compound frequency,
the more likely the future value can be calculated.
the less likely the future value can be calculated.
the higher the future value will be.
the lower the future value will be.
4.
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award:
10 out of
10 points
MC Qu. 13 While the future value will increase as compounding frequency in...
While the future value will increase as compounding frequency increases, the size of each
increase in future value
diminishes as compounding frequencies increase.
diminishes as compounding frequencies decrease.
increases as compounding frequencies increase.
is independent of the compounding frequency increases.
5.
award:
10 out of
10 points
MC Qu. 14 Compounding monthly versus annually causes the interest rate to ...
Compounding monthly versus annually causes the interest rate to be effectively higher, and thus
the future value
decreases.
is independent of the monthly compounding.
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 Fall '11
 JasonLittle
 Finance, Time Value Of Money, Annual Percentage Rate, Annuity, Future Value, Interest, Investing, MC Qu.

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