13. Which of the following will result in a future value greater than $100?

A) PV = $50, r= an annual interest rate of 10%, and n= 8 years.

B) PV = $75, r= an annual interest rate of 12%, and n= 3 years.

C) PV = $90, r= an annual interest rate of 14%, and n= 1 year.

D) All of the future values are greater than $100.

Answer:

17. To determine the interest paid each compounding period, we take the advertised annual percentage rate and simply divide it by the ________ to get the appropriate periodic interest rate.

A) number of compounding periods for the length of an investment

B) number of discounting periods for the length of an investment

C) number of compounding periods per year

D) number of compounding periods per month

Answer: