bie Choice): Answer EACH of the following 7 questions CIRC Name LEthe Correct Answer. If nothing is eircled it will be marked incorrect! (3 points each - 21 points). 1. Simple and compound interest produce the same result a) over one measurement period b) never compound interest is always produces a larger amount c) never simple interest always produces a larger amount d) all the time e) none of the above 2. Which of the following statements are true? i) A constant rate of simple interest implies a decreasing effective rate of interest. A constant rate of compound interest implies a decreasing effective rate of intere i) For periods less than one year compound discount produces a smaller present va than simple discount. a) only i) b) only ii) e) only ii) d) i) and i) e) i) and ii 3. Which of the following statements are true regarding the force of interest at time t? A'(t) i) A(C) iii) ' = ln(1 + i) a) only i) b) only ii) c) only iii) d i andii) e i) an 4. Which of the following statements is NOT true (assume compound interest). ). v = e e) v=- 1-d b) v=- a)v=l-d