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1. The effective interest rate of 6% interest rate compounded quarterly is (circle): A. 6.09% B.6.14% C. 6.34% D.6.32%. 2. A principal som, P, is

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1. The effective interest rate of 6% interest rate compounded quarterly is (circle): A. 6.09% B.6.14% C. 6.34% D.6.32%. 2. A principal som, P, is invosted at a nominal interest rato, "Y", and compounded "m" timas par yuar for "Y" years. What amount, 7, will be accumulated at the end of this period (circle)? A. P (1+r/m)B. P (1+w/m)** C. P (1+x) D. P(1+r/m)** 3. In the formula, P=F(1+1), the factor, (1 + tais called the (circlo): A. Sinking Purid Factor B. Capital Recovery Factor C. Single Payment Present Worth Factor D. Uniforia Series Present 4. In the formula, P-A[{(1+1).- 1Y ((1+1) }), the Interest factor in the squaro bracket is called the (circle): A. Uniform Series Sinklag Pund Factor B. Uniform Series Capital Recovery Factor C. Uniform Series Prosent Worth Factor D. None of the abovo. 5. Which of the following relationships between compound interest factors is not oanrect (circlu)? A. Single Payment Compound Amount Factor and Single Payment Present Worth Factor are reciprocals. B. Sinking Fund Factor and Uniform Series Compound Amount Puctor ure reciprocals: C. Capital Recovery Factor and Uniform Serion Present Worth Factor ara reciprocals. D. Capital Recovery Factor and the Sluking Fund Pactor are reciprocals. 6. An "aonuity" is defined us: A. Eamed interest due at the end of each interent period. B. Amount of interest earned by a unit of principal in a unit of timo. C. A series of equal cash flows occuring at equal porlods of time. D. All of the above. 7. In the formula, F=P(1+1)", the factor, (1 +1)* is called the (cirolo): A. Uniform sarios compound amount factor B. Single payment present worth factor C. Single payment compound factor D. Uniform serios sinking fund 8. An individaul wishes to deposit an amount of money now and $100 overy six months so that at the end of fivo Years $1,500 will have been accumulated. With interest at 4% per year, compounded somiannually, how much should be deposited now (circle)? A $45535 B. SS10.95 C. $332.24 D. $284.51

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