D Question 1 1.25 pts You deposited $1,000 in a bank that gives 24% annually. If the bank compounds the interest rate monthly, the future value of the amount deposited will be in the 4th year would be O $989.60 O $2,587.07 O $2,612.23 O $2,364.21 Question 2 1.25 pts Interest rate and present value are O a and be Positively related Not related Inversely related Question 3 1.25 pts U A fixed equal periodic amount of money that is received or paid for a given number of years is called Future value Perpetuity O Present Value O Annuity Question 4 1.25 pts A fixed equal periodic amount of money that is received forever is called d) Future value Perpetuity Present value Annuity 1.25 pts Question 5 If you earn interest on the principal only, this refers to Compound interest rate O Yield O Coupon O a) Simple interest rate Question 6 1.25 pts Assume that you deposited $2,000 in Bank A that gives 8% simple interest rate. The amount of money will find in your account in bank A in the fourth year is $2.960 $400 O $2,800 $2.640 Question 1.25 pts You deposited $2,000 in Bank B that gives 8% compounded annually. You deposit the money for 4 years. The amount of money you find in Bank B in the fourth year is O $3,147.04 O d) $800 O $1,464.10 O $2,720.98 Question 8 1.25 pts Assume that you deposited $100 in a bank that becomes $200 in 8 years, your annual rate of return (interest) will be 0 7.57% 5.95% 09.05% 6.50%