1.If the first term in a arithmetic sequence is 3 with a common difference of 2, find the sum of the first 20 terms?

43

460

41

440

2.Fornnumber of terms, wouldt_nbe larger for a geometric sequence or a arithmetic sequence?

Select one:

A.Depends on the value of the common difference and common ratio

B.Larger for geometric sequence

C.Larger for arithmetic sequence

D.They will generally be the same

3.How will you move values on a timeline?

Select one:

A.identify the focal date, if not known, assume the present point on your timeline as the focal date. Move all cash values on the timeline to the focal date. If the cash flow is after the focal date, we will move the cash flow back to the focal date by dividing it with the compound interest factor of (1+i)^n.If the cash flow is before the focal date, we will move the cash flow forward to the focal date by multiplying it with the compound interest factor of (1+i)^n. If any cash flow is on the focal date, then we do not need to divide or multiply the cash flow with the compound interest factor and we can include the cash value as it is on our timeline.

B.Move all cash values on the timeline to the focal date. If the cash flow is before the focal date, we will move the cash flow back to the focal date by dividing it with the compound interest factor of (1+i)^n.If the cash flow is after the focal date, we will move the cash flow forward to the focal date by multiplying it with the compound interest factor of (1+i)^n. If any cash flow is on the focal date, then we do not need to divide or multiply the cash flow with the compound interest factor and we can include the cash value as it is on our timeline.

C.Move all cash values on the timeline to the focal date. If the cash flow is after the focal date, we will move the cash flow back to the focal date by multiplying it with the compound interest factor of (1+i)^n.If the cash flow is before the focal date, we will move the cash flow forward to the focal date by multiplying it with the compound interest factor of (1+i)^n. If any cash flow is on the focal date, then we do not need to divide or multiply the cash flow with the compound interest factor and we can include the cash value as it is on our timeline.

D.Move all cash values on the timeline to the focal date. If the cash flow is after the focal date, we will move the cash flow back to the focal date by dividing it with the compound interest factor of (1+i)^n.If the cash flow is before the focal date, we will move the cash flow forward to the focal date by multiplying it with the compound interest factor of (1+i)^n. If any cash flow is on the focal date, then we do not need to divide or multiply the cash flow with the compound interest factor and we can include the cash value as it is on our timeline.

4.How will you move values on the timeline?

Select one:

A.Identify the focal date and then take all values to the focal date. If the focal date is in the future compared to where cashflow is located on the timeline, then we divide the cashflow with the simple interest factor of (1+rt). If the focal date is in the past compared to where the cashflow is on the timeline, we multiply the cashflow with the simple interest factor of (1+rt). If any of the cashflows are on the focal date, then we do not need to multiply or divide this with the simple interest factor and we can add this as it is in our equation of value.

B.Identify the focal date and then take all values to the focal date. If the focal date is in the future compared to where cashflow is located on the timeline, then we multiply the cashflow with the simple interest factor of (1+rt). If the focal date is in the past compared to where the cashflow is on the timeline, we divide the cashflow with the simple interest factor of (1+rt). If any of the cashflows are on the focal date, then we do not need to multiply or divide this with the simple interest factor and we can add this as it is in our equation of value.

C.Identify the focal date and then take all values to the focal date.

D.Identify the focal date and then take all values to the focal date. If the focal date is in the future compared to where cashflow is located on the timeline, then we multiply with the simple interest factor of (1+rt).

5.Which of the following statements is not true?

Select one:

A.A perpetuity does not mature at some point in the future.

B.One can calculate the future value of a perpetuity

C.In an annuity due payments occur at the start of the period.

D.In an ordinary annuity payments occur at the end of the period.

6.What order do you need to follow to solve simple interest and simple discount problems?

Select one:

A.Draw the timeline, put the values on the right point on the timeline, identify your focal date, and take all values to the focal date which is usually the present point in time unless specified by the question.

B.Draw the timeline,identify your focal date, read the question, put the values on the right point on the timeline, take all values to the focal date

C.Read the question, draw the timeline, put the values on the right point on the timeline, identify your focal date, and take all values to the focal date

D.Read the question, draw the timeline, put the values on the right point on the timeline, identify your focal date, take all values to the focal date which is usually the present point in time unless specified by the question.

7.If one compound interest rate is 12 percent per annum compounding monthly (J₁₂= 12%) and another interest rate is 12 percent per annum compounding weekly(J₅₂= 12%), what is the interest rate per period in each case, how many periods per year is there for each type of interest rate and how many periods will there be for 5 years

Select one:

A.Monthly rate J12/12 = 1.1%, 12 periods per year and 50 periods for 5 years; Weekly rateJ52/52 = 0.23%, 52 periods per year and 260 periods for 5 years

B.

Yearly rate J12/12 = 1%, 12 periods per year and 60 periods for 5 years; Weekly rateJ52/52 = 0.23%, 52 periods per year and 260 periods for 5 years

C.

Monthly rate J12/12 = 1%, 12 periods per year and 60 periods for 5 years; Weekly rateJ52/52 = 0.23%, 52 periods per year and 260 periods for 5 years

D.

Weekly rate J12/12 = 1%, 12 periods per year and 60 periods for 5 years; Monthly rateJ52/52 = 0.23%, 52 periods per year and 260 periods for 5 years

8.How do you decide to move values on a timeline using compound interest and the concept of the time value of money?

Select one:

A.Identify the focal date, if not known, assume the present point on your timeline as the focal date. Move all cash values on the timeline to the focal date. If the cash flow is after the focal date, we will move the cash flow back to the focal date by dividing it with the compound interest factor of (1+i)^n.If the cash flow is before the focal date, we will move the cash flow forward to the focal date by multiplying it with the compound interest factor of (1+i)^n. If any cash flow is on the focal date, then we do not need to divide or multiply the cash flow with the compound interest factor of (1+i)^n and we can include the cash value as it is on our timeline. Note, dividing a value on the timeline by (1+i)^n implies that we are finding the present value. On the other hand, multiplying by (1+i)^n implies that we are finding the accumulated value.

B.Move all cash values on the timeline to the focal date. If the cash flow is after the focal date, we will move the cash flow back to the focal date by dividing it with the compound interest factor of (1+i)^n.If the cash flow is before the focal date, we will move the cash flow forward to the focal date by multiplying it with the compound interest factor of (1+i)^n. If any cash flow is on the focal date, then we do not need to divide or multiply the cash flow with the compound interest factor and we can include the cash value as it is on our timeline.

C.Move all cash values on the timeline to the focal date. If the cash flow is after the focal date, we will move the cash flow back to the focal date by multiplying it with the compound interest factor of (1+i)^n.If the cash flow is before the focal date, we will move the cash flow forward to the focal date by multiplying it with the compound interest factor of (1+i)^n. If any cash flow is on the focal date, then we do not need to divide or multiply the cash flow with the compound interest factor and we can include the cash value as it is on our timeline.

D.Move all cash values on the timeline to the focal date. If the cash flow is before the focal date, we will move the cash flow back to the focal date by dividing it with the compound interest factor of (1+i)^n.If the cash flow is after the focal date, we will move the cash flow forward to the focal date by multiplying it with the compound interest factor of (1+i)^n. If any cash flow is on the focal date, then we do not need to divide or multiply the cash flow with the compound interest factor and we can include the cash value as it is on our timeline.

9.250(1+0.015)ⁿ=750

Select one:

A.74.01

B.73.76

C.77.39

D.73.79