Ch_05_S_Key - CF Quiz 1 Ch 05 Key 1-1 You are investing $100 today in a savings account at your local bank Which one of the following terms refers

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1 CF Quiz 1 Ch 05 Key 1-1. You are investing $100 today in a savings account at your local bank. Which one of the following terms refers to the value of this investment one year from now? A. future value B. present value C. principal amounts D. discounted value E. invested principal Refer to section 5.1 2-6. Shelley won a lottery and will receive $1,000 a year for the next ten years. The value of her winnings today discounted at her discount rate is called which one of the following? A. single amount B. future value C. present value D. simple amount E. compounded value Refer to section 5.2 3-11. What is the relationship between present value and future value interest factors? A. The present value and future value factors are equal to each other. B. The present value factor is the exponent of the future value factor. C. The future value factor is the exponent of the present value factor. D.
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This note was uploaded on 11/29/2011 for the course FINANCE 332 taught by Professor Linney during the Fall '11 term at Guilford Tech.

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Ch_05_S_Key - CF Quiz 1 Ch 05 Key 1-1 You are investing $100 today in a savings account at your local bank Which one of the following terms refers

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