1.Suppose your grand grandfather deposited $10 at 5.5% interest 200 years ago. How much would the investment be worth today? This is a question looking for

Present Value

Future value

2. For BAII Plus financial calculator, to clear time value of money keys in the third rows , you need to

Use 2nd + CE\C (CLR WORK)

use 2nd plus FV(Clear TVM)

reset key

ctrl+shift+enter

3. Factor of (1+r)t is a

present value factor

none of the above

discount factor

future value factor

4. Which one of the following has a greater present value? Both Jenny and David will receive $10,000, but Jenny will receive in 30 years , David will get in 40 years. All other fators are the same, who has a greater present value

David has a greater present value

Jenny has a greater present value

5. Which one of the following statements is true?

You always earn more money in compound interest rate case than that in simple interest rate.

Assuming compound interest rate, you always earn same amount of interest payment every period.

Assuming simple interest rate, you always earn same amount of interest payment every period.

None of the above