Multiple choice

1) In determining the future value of a single amount, one measures 

A.-the present value of an amount discounted at a given interest rate.

B.-the present value of periodic payments at a given interest rate.

C.-the future value of an amount allowed to grow at a given interest rate.

D.-the future value of periodic payments at a given interest rate.

2) An annuity may be defined as 

A.-a series of payments of unequal amount.

B.-a series of consecutive payments of equal amounts.

C.-a series of yearly payments.

D.-a payment at a fixed interest rate.

3) Mr. Blochirt is creating a college investment fund for his daughter. He will put in $850 per year for the next 15 years and expects to earn an 8% annual rate of return. How much money will his daughter have when she starts college? 

A.-$12,263

B.-$23,079

C.-$24,003

D.-$11,250

4) If you were to put $1,000 in the bank at 6% interest each year for the next ten years, which table would you use to find the ending balance in your account? 

A.-Future value of $1

B.-Future value of an annuity of $1

C.-Present value of an annuity of $1

D.-Present value of $1