1. TRUE or FALSE: As the number of compounding periods per year for a given interest increases (e.g., 6% p.a., compounded quarterly to 6% p.a., compounded monthly), the future value at the end of year 10 of some amount deposited today decreases. a. True b. False

2. Tayna wants to buy a $30,000 car. She has three options: Plan A: Pay $30,000 in cash for the car today Plan B: Pay $585 per month for 5 years, the first payment starts exactly one month from today. Plan C: Pay $3500 down payment today and then pay $500 per month for 5 years with the first payment due exactly one month from today.

Assuming an interest rate of 8.25% p.a., all else constant, which of the following options should Tanya choose? a. Plan A b. Plan B c. Plan C d. All three options are the same e. There is not enough information provided to answer this question.

3. At 8% compounded annually, approximately how long will it take (i.e., which of the following is the closest answer) for $750 to triple? a. 6.5 years b. 48 months c. 9 years d. 14.27 years e. 86.3 months

4. Consider three investment alternatives: a perpetuity, an ordinary annuity, and an annuity due. All three have the SAME annual payment amount. The annuity due and the ordinary annuity have the same number of payments (e.g., 6 payments). The interest rate is positive and the same for all three investments. Given this information, which of the following statements is correct? a. The present value of the ordinary annuity is less than the present value of the annuity due. b. The perpetuity and the annuity due have the same present value. c. The future value of the ordinary annuity is less than future value of the annuity due. d. The present value of the ordinary annuity is greater than the present value of the perpetuity. e. There is not enough information provided to correctly answer this question.