Isabel plans to deposit $1,000 into a fund at the beginning of each of the next eight years. If hers fund earns 4.75 percent compounded annually, how much will she have at the end of eight years? A. $9,464 B. $9,692 C. $9,750 D. $9,802 E. $9,914

7. Janet plans to deposit $2,000 into a fund at the end of each of the next four years. Suppose that she keeps the money in the account until the end of the sixth year. If her fund earns 4.75 percent compounded annually, how much will she have at the end of six years? A. $8,588 B. $8,825 C. $9,156 D. $9,424 E. $9,620

8. In comparing an ordinary annuity and an annuity due, which of the following is true? A. The future value of an annuity due is always greater than the future value of an otherwise identical ordinary annuity. B. The future value of an ordinary annuity is always greater than the future value of an otherwise identical annuity due. C. The future value of an annuity due is always less than the future value of an otherwise identical ordinary annuity, since one less payment is received with an annuity due. D. All things being equal, one would prefer to receive an ordinary annuity compared to an annuity due. E. B and D, only

9. Compounding monthly versus annually causes the interest rate to be effectively higher, and, as a result,

A. the future value grows.

B. the future value decreases.

C. nothing changes since the future value is independent of the monthly compounding.

D. the future value is affected only if the calculation involves an annuity due. E. the future value is affected only if the calculation involves an ordinary annuity and not an annuity due.

10. What is the future value of an annuity due that pays $500 per year for each of the next three years if the interest rate is 6.0 percent? A. $1,546 B. $1,592 C. $1,687 D. $2,123 E. $2,251