1. When the annual effective interest rate is 20% and the number of years is 3, which of the following most closely approximates the ratio of to ?

A. 1.6

B. 1.7

C. 1.8

D. 1.9

E. 2.0

2, Which of the following is closest to the portion of the total present value of a level continuous perpetuity that is paid in the first year when i = 25% ?

A. 5 %

B. 10 %

C. 15 %

D. 20 %

E. 25 %

3. If the Accumulated Value of an investment at time t is AVt = 1.2+.1t 2 , what is when t=2?

A. .05

B. .10

C. .15

D. .20

E. .25