1a) Which of the following help to explain the fact that a dollar today is worth more than a dollar in the future?

(1) Positive rates of inflation

(2) Opportunity cost of lost earnings

(3) People prefer consumption now rather than later

(4) Uncertainty of future

	a.	1 and 2 only
	b.	2, 3 and 4
	c.	1, 2, 3, and 4
	d.	1, 2 and 3

1b) What is the approximate future value of a portfolio given that the client has investing $250 at the end of each year for 20 years and the investments earned 9% annually?

	a.	$13,900
	b.	$5,450
	c.	$12,800
	d.	$14,190

1c) Which formula is appropriate to solve for the beginning-of-the-month payment required for a car loan if you know the interest rate, length of the loan, and the borrowed amount?

	a.	Present value
	b.	Annuity due
	c.	Future value
	d.	Ordinary annuity