1) When the amount eared on a deposit has become part of the principal at the end of a specified time period the concept is called A) discount interest B) nominal interest C) primary interest. D) future value. 2) The future value of $100 deposited at 6 percent for four years is: A) $126. B) $ 79. C) $124. D) $116. 3) The future value of $200 deposited at 8 percent for three years is: A) $248 B) $252 C) $158. D) $200. 4) The future value of $30,000 deposited at 9 percent for twenty years is: A) $ 168,200 B) S 16,820 C) $5.340 D) $ 45,000 5) Which of the following is true? A) Present value is always greater than future value B) Present value is always equal to future value Future value is always greater than present value D) Future value is always less than present value 6) Which type of stock has voting rights? A) preferred stock B) restricted stock C) common stock D) none of the above the 7) The future value of a dollar as the interest rate increases and further into the future the initial investment is made. A) decreases: decreases B) decreases, increases C) increases increases D) increases: decreases 8) Each of the following is required for a corporation to pay a cash dividend except for A) sufficient retained earnings B) a vote by managers declaration by the board of directors D) sufficient cash to pay the dividend 9) If you expect to retire in 30 years, are currently comfortable living on $50,000 per year and expect inflation to average 3% over the next 30 years, what amount of annual income will you need to live at the same comfort level in 30 years? A) $121,350 B) $95.000 C) $20,599 D) $51.500 10) If a new bond issue hits the market with a stated coupon rate of 12% and the market interest rate is 8% that bond will be issued at. A) par value B) zero coupon C) a premium D) a discount