19) Which one of the for 10 years 7 percen t pounded D) A perpetuity comp o s1 S100 monthly payments the disc C) Most lansare a form of a per D) The present value of a perruity cannot be E) Perpetuities are finite but annuities are not tied the new year. The 20) Steve just computed the present value of a 10.000 bonus he will received interest rate he used in his computation is referred to as the A) current yield. B) effective rate. C) compound rate. D) simple rate, E) discount rate. 21) You are comparing two annuities that offer regular payments of $2,500 for five years and pay.75 percent interest per month. You will purchase one of these today with a single lump sum payment. Annuity A will pay you monthly, starting today, while annuity B will pay monthly, starting one month from today. Which one of the following statements is correct concerning these two annuities? A) These annuities have equal present values but unequal future values. B) These two annuities have both equal present and equal future values. C) Annuity B is an annuity due D) Annuity A has a smaller future value than annuity B. E) Annuity B has a smaller present value than annuity A. 22) Your credit card charges you.85 percent interest per month. This rate when multiplied by 12 is called the rate. d A) effective annual B) annual percentage C) periodic interest D) compound interest E) episodic interest 19) Which one of the for 10 years 7 percen t pounded D) A perpetuity comp o s1 S100 monthly payments the disc C) Most lansare a form of a per D) The present value of a perruity cannot be E) Perpetuities are finite but annuities are not tied the new year. The 20) Steve just computed the present value of a 10.000 bonus he will received interest rate he used in his computation is referred to as the A) current yield. B) effective rate. C) compound rate. D) simple rate, E) discount rate. 21) You are comparing two annuities that offer regular payments of $2,500 for five years and pay.75 percent interest per month. You will purchase one of these today with a single lump sum payment. Annuity A will pay you monthly, starting today, while annuity B will pay monthly, starting one month from today. Which one of the following statements is correct concerning these two annuities? A) These annuities have equal present values but unequal future values. B) These two annuities have both equal present and equal future values. C) Annuity B is an annuity due D) Annuity A has a smaller future value than annuity B. E) Annuity B has a smaller present value than annuity A. 22) Your credit card charges you.85 percent interest per month. This rate when multiplied by 12 is called the rate. d A) effective annual B) annual percentage C) periodic interest D) compound interest E) episodic interest
