1. Which of the following statements is correct?

A.In an annuity due, cash flows occur at the end of each period

B. The present value of an annuity due is equal to the present value of an ordinary annuity

C. The present value of multiple cash flows is greater than the sum of those cash flows

D. The present value of an annuity due is less than the present value of an ordinary annuity

E.In ordinary annuities, cash flows occur at the end of each period

2. You are trying to choose one of the following bank CDs to deposit $20,000. Which will have the highest future value (so you should pick) if you plan to invest for five years?

A. 3.75% compounded annually

B.3.60% compounded weekly (assume 52 weeks)

C. 3.50% compounded daily

D. 3.40% compounded quarterly

E. 3.25% compounded monthly

3. You deposit $1,000 in a bank account that pays 10% interest, compounded annually, for three years. What is the amount of the interest on interest?

4. UTA currently has 40,000 students. In ten years from today, it is projected that UTAs enrollment will be 65,000. What is the expected annual growth rate for the next ten years?