1. when comparing 2 annuites, which offer monthly payments for 10 years. Both annuities are identical with the exception of the payment dates. Annuity A. pays on the first of each month, while annuity B. pays on the last day of each month choose the best answer.

A. both annuites are of equal value today

B. AnnuityB is an annuity due

C, annuity B has a higher present value than annual B.

D. anniuty B has a higher present value than annuint A

E. both annuity have the same FV 10 years from today.

2. a perpetuity differ from an annuity because?

3. Bradly Snapp has deposited $7000 in a guaranteed investment account with a promised rate 6% compounded annually. The plans to leave it there for 4 full years. When he make a down payment on a car after graduation. How much down payment he will need? a. 196.000 b. 175.57 c, 8960.00 d. 8837.34 e. 109225.29

4. Brad just won the lottery as your prize you receive $1500 a month for 100 months. If you can earned 8% on your money what it will be?

5. Todd is able to pay175 a month for 5 years for a core interest rate is 4.9%. How much it will be?

6.Beneficary of a life insurance policy. The insurance company inform you that you have 2 options for receiving the insurance proceeds. You can received a lump sum of $50,000 or receive payment of $641 a month for 10 years an can earned 5% on your money what you should take and why?

A. you should accept payments they are worth 56,451.91 today.

B. accept the payment they are worth 56532.76 today

C. accept the payment are only worth 47,757.69 today

D.accept the payment of 50,000 the payment is only worth 47757.69 today

E. accept the 50,000 the payment are only worth 47,808, today.

7. you buy an annuity which will pay you 12000 a year for 10 years. The payment are paid on the first day of each year which is the value of the annuity at 7% discount rate?

7.b. you buy an annuity which will pay you 17000 a year for 10 years. The payment are paid on the first day of each month what is the value of the annuity at 7 % discount rate.

8. What is the future value of 1000 a year for 5 years at a 6% rate of interest?

9. which is the following will produce the highest present value interest factor

a. 6% of interest for 5 years b.6% interest rate for 8 years c. 6% interest rate for 10 years d. 8% interest rate for 5 years e. 8% interest rate for 10 years.

10. Tracy invested 1000 for 5 years ago and earn 4 % interest on the investment by leaving her interest earning in her account she increase the amount by?

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