6. Sara is investing $1,000 today. Which one of the fo amount? one of the following will increase the future value of that C. P. Ying interest anvestment time A. Shortening the investment time period B. Paying interest only on the principal amount C. Paying simple interest rather than compound interest D. Paying interest only at the end of the E. Increasing the interest rate at the end of the investment period rather than throughout the investment period 7. A credit card has an annual percentage rate effective annual rate on this account: has an annual percentage rate of 12.9 percent and charges interest monthly. The A. will be less than 12.9 percent. B. can either be less than or equal to 12.9 percent. C. is 12.9 percent. D. can either be greater than or equal to 12.9 percent. E. will be greater than 12.9 percent. 8. Which one of the following will decrease the present value of an annuity? A. Increase in the annuity's future value B. Increase in the payment amount C. Increase in the time period D. Decrease in the discount rate E. Decrease in the annuity payment 9. Martha invested S500 two years ago at 6 percent interest and she have $600 now. The $600 is referred to as the: A. true value. B. future value. C. present value. D. discounted value. E. complex value. 10. Which one of the following has the highest effective annual rate? A. 6 percent compounded annually B. 6 percent compounded semi-annually C. 6 percent compounded quarterly D. 6 percent compounded monthly E. All the other answers have the same effective annual rate