5. Which of the following statements is FALSE? A. Finding the present value and compounding are the same. B. A dollar today and a dollar in one year are not equivalent. C. If you want to compare or combine cash flows that occur at different points in time, you first need to convert the cash flows into the same units or move them to the same point in time. D. The equivalent value of two cash flows at two different points in time is sometimes referred to as the time value of money. - Use the information for the question(s) below. Your great aunt Matilda put some money in an account for you on the day you were born. This account pays 8% interest per year. On your 21 st birthday the account balance was $5,033.83. 6. The amount of money that your great aunt Matilda originally put in the account is closest to: A. $600 B. $800 C. $1,000 D. $1,200 7. The amount of money that would be in the account if you left the money there until your 65 th birthday is closest to: A. $29,556 B. $148,780 C. $168,824 D. $748,932 - Use the following timeline to answer the question(s) below. 8. At an annual interest rate of 7%, the future value of this timeline in year 3 is closest to: A. $3,295 B. $3,600 C. $3,770 D. $4,035 9. Which of the following statements is FALSE? A. Bonds are a securities sold by governments and corporations to raise money from investors today in exchange for promised future payments. B. By convention the coupon rate is expressed as an effective annual rate. C. Bonds typically make two types of payments to their holders. D. The time remaining until the repayment date is known as the term of the bond