1- What best describes the time value of money? a. The interest rate charged on a loan. b. Accounts receivable that are determined uncollectible. c. An investment in a checking account. d. The relationship between time and money. 2- What is interest? a. Payment for the use of money. b. An equity investment. C. Return on capital. d. Loan. 3- What is NOT a variable that is considered in interest computations? a. Principal b. Interest rate. c. Assets d. Time. 4- A series of equal receipts at equal intervals of time when each receipt is received at the beginning of each time period is called an . a. ordinary annuity. b. annuity in arrears. C. annuity due. d. unearned receipt. 5- What is the primary difference between an ordinary annuity and an annuity due? a. The timing of the periodic payment. b. The interest rate. c. Annuity due only relates to present values. d. Ordinary annuity only relates to present values. 6- If you invest $50,000 to earn 8% interest, which of the following compounding approaches would return the lowest amount after one year? a. Daily b. Monthly c. Quarterly d. Annually