6. The present value of an annuity: a. is equal to the sum of the present values of each period's cash flow. b. has a future value (as an amount) equal to the future value of the annuity c. has a future value (as an amount) equal to the sum of the annuity's cash flows. d. a and b. 7. When using a present value of an annuity table: a. payments are assumed to be made at the beginning of each period. b. PVFA factors decrease with an increase in the interest rate. c. PVFA factors increase with an increase in the number of periods. d. b and c only 8. Which of the following phrases would not be utilized if the payments were an annuity due? a. End-of-period payments b. Starting immediately c. Starting now d. Starting today 9 More frequent compounding results infuture values andpresent values than less frequent compounding at the same nominal interest rate. a. higher, higher b. lower, higher c. higher, lower d. lower, lower 10. Interest rates are quoted by stating the_followed by the a. effective annual rate b. nominal rate c. yield d. coupon rate e none of the above