1)The periodic interest rate is the nominal annual interest rate divided by the number of compounding periods.

True

False

2) What is the principal that will grow to $3500 in 9 years at 10% p.a. compounded quarterly?

$1438.82

$1484.34

$8513.87

$1438.83

3)The principal or discounted value is known as the:

Present value

Compound discount

Future value

Interest

4)When finding the Future Value,the difference between the Future Value and the Present Value is:

Present value

Future value

Interest

Compound discount

5)Theperiodic interest rate (i)is always the same as the nominal annual interest rate (j)

True

False

6)The difference between agivenFuture value and its present value (Discounted value)

Compound discount

Interest

Present value

Future value