31. The process of determining the present value of money is: a. Discounting b. Compounding C. Amortization 32. Compound interest: a. b. c. Is the same as simple interest Results in less interest earned than simple interest Calculates interest on interest earned 33. An annuity is defined as: A financial asset with an infinite number of payments a. b. A financial asset with a series of equal periodic payments for a specified number of periods c. The future value of a perpetuity 34. An annuity due means that the payments occur: a. b. c. At the end of the period At the beginning of the period In the middle of the period 35. An annuity due is worth more than an annuity because a. b. c. Each payment is compounded for an extra year Each payment is compounded for an extra two years Each payment is discounted for an extra year 36. If the formula for the future value of an amount of money is FV PV(1+1),then the formula for the PV of an amount of money is: a. PV FV/(1+)" C. PV FV/I" 37. In the formula for the future value of an amount of money FV PV(1+I), N is equal to: a. b. c. Nominal interest rate Negative 1 Number of periods 38. In the formula for the future value of an amount of money FV PV(1+l),I is equal to: a. b. c. Interest rate Investment Internal Rate of Return