3.

Determine the present value of the following single amounts (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.):

	Future Amount	i =	n =	Present Value
1.	$27,000	8%	13
2.	$21,000	9%	16
3.	$32,000	12%	30
4.	$47,000	10%	12

7.

Listed below are several terms and phrases associated with concepts discussed in the chapter. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it.

	List A		List B
	1.	Interest	a.	First cash flow occurs one period after agreement begins.
	2.	Monetary asset	b.	The rate at which money will actually grow during a year.
	3.	Compound interest	c.	First cash flow occurs on the first day of the agreement.
	4.	Simple interest	d.	The amount of money that a dollar will grow to.
	5.	Annuity	e.	Amount of money paid/received in excess of amount borrowed/lent.
	6.	Present value of a single amount	f.	Obligation to pay a sum of cash, the amount of which is fixed.
	7.	Annuity due	g.	Money can be invested today and grow to a larger amount.
	8.	Future value of a single amount	h.	No fixed dollar amount attached.
	9.	Ordinary annuity	i.	Computed by multiplying an invested amount by the interest rate.
	10.	Effective rate or yield	j.	Interest calculated on invested amount plus accumulated interest.
	11.	Nonmonetary asset	k.	A series of equal-sized cash flows.
	12.	Time value of money	l.	Amount of money required today that is equivalent to a given future amount.
	13.	Monetary liability	m.	Claim to receive a fixed amount of money.