8 Which of the following investments would have the 'lowest' present value? Assume that the effective annual rate for all investments is the same and is greater than zero. Question options: a) Investment C pays $125 at the beginning of every 6-month period for the next 10 years (a total of 20 payments). b) Investment E pays $250 at the beginning of every year for the next 10 years (a total of 10 payments). c) Investment B pays $125 at the end of every 6-month period for the next 10 years (a total of 20 payments). d) Investment D pays $2,500 at the end of 10 years (just one payment). e) Investment A pays $250 at the end of every year for the next 10 years (a total of 10 payments). Question 10 Which of the following bank accounts has the highest effective annual return? Question options: a) An account that pays 8% nominal interest with monthly compounding. b) An account that pays 7% nominal interest with daily (365-day) compounding. c) An account that pays 8% nominal interest with daily (365-day) compounding. d) An account that pays 8% nominal interest with annual compounding. e) An account that pays 7% nominal interest with monthly compounding. Question 11 You plan to invest some money in a bank account. Which of the following banks provides you with the highest effective rate of interest? Question options: a) Bank 4; 6.0% with quarterly compounding. b)Bank 5; 6.0% with daily (365-day) compounding. c) Bank 3; 6.0% with annual compounding. d) Bank 2; 6.0% with monthly compounding. e) Bank 1; 6.1% with annual compounding. Question 16 If your bank pays you 3% interest rate annually on your deposit, how long does it take your deposit to triple? Question options: a) Shorter than 15 years b) Longer than 15 years, but less than 30 years c) Longer than 30 years, but less than 40 years d) Longer than 40 years Question 19 What's the present value of $200 to be received in 5 years if the interest rate is 5% annual compounding? Question options: a) Less than $70 b) Larger than $70, but less than $140 c) Larger than $140, but less than $210 d) Larger than $210