38. A series of equal receipts at equal intervals of time when each receipt is received at thebeginning of each time period is called anc.annuity due.

39.In the time diagram below, which concept is being depicted?01$12$13$14$1PV

40.On December 1, 2014, Richards Company sold some machinery to Fleming Company.The two companies entered into an installment sales contract at a predeterminedinterest rate. The contract required four equal annual payments with the first paymentdue on December 1, 2014, the date of the sale. What present value concept isappropriate for this situation?

41.An amount is deposited for eight years at 8%. If compounding occurs quarterly, then the table value is found at

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42.If the number of periods is known, the interest rate is determined by

43. Present value is

44.Which of the following statements is true?

45.What is the primary difference between an ordinary annuity and an annuity due?

46.What is the relationship between the future value of one and the present value of one?

47.Peter invests $100,000 in a 3-year certificate of deposit earning 3.5% at his local bank.Which time value concept would be used to determine the maturity value of thecertificate?

48.Jerry recently was offered a position with a major accounting firm. The firm offered Jerryeither a signing bonus of $23,000 payable on the first day of work or a signing bonus of$26,000 payable after one year of employment. Assuming that the relevant interest rateis 10%, which option should Jerry choose?

49.If Jethro wanted to save a set amount each month in order to buy a new pick-up truckwhen the new models are next available, which time value concept would be used todetermine the monthly payment?

50. Betty wants to know how much she should begin saving each month to fund herretirement. What kind of problem is this?b.Future value of an ordinary annuity.

51If the interest rate is 10%, the factor for the future value of annuity due of 1 for n = 5, i =10% is equal to the factor for the future value of an ordinary annuity of 1 for n = 5, i =10%

52.Which of the following is true?