1. An annuity due means that the payments occur:

   	a.	At the end of the period
   	b.	At the beginning of the period
   	c.	In the middle of the period

2. An annuity due is worth more than an annuity because:

   	a.	Each payment is compounded for an extra year
   	b.	Each payment is compounded for an extra two years
   	c.	Each payment is discounted for an extra year

3. If the formula for the future value of an amount of money is FV= PV(1+I)ⁿ , then the formula for the PV of an amount of money is:

   	a.	PV = FV/(1+I)n
   	b.	PV = FV + I
   	c.	PV = FV/In

4. In the formula for the future value of an amount of money FV= PV(1+I)ⁿ , N is equal to:

   	a.	Nominal interest rate
   	b.	Negative 1
   	c.	Number of periods