Nam 2 FINA 320. Spring 2017 nswer all 40 questions Each camies l point. Total 40points MULTIPLECHOICE. Choose the one alternative that best completes the statement or answers the question. and money to be received in the future? A) When current interest rates are different from expected future rates B) A period of recession C) When there is no risk of nonpayment in the future D) When idle money can earn a positive return 2) As the compounding rate becomes lower and lower, the future value of inflows approaches B) infinity. C) the present value of the inflows. D) More information is needed to answer the question. 3) If you invest S10,000 today at 10% interest, how much will you have in 10 years? 3) A) S13.860 B)S3,860 S80,712 D) $25,940 4) You are to receive $12,000 at the end of five years. The available yield on investments is 4) 6%. Which table would you use to determine the value of that sum today? A) Present value of an annuity of $1 B) Present value of $1 D) Future value of $1 5) As the time period until receipt increases, the present value A) increases B) decreases C) remains the same D) Not enough information is given to tell. 6) If a father and mother set aside a certain amount each year for their daughter's college 6) fund, which table would be used to determine the amount necessary to be put away each year in order to reach a certain goal once the daughter attends college? B) The future value of $1. A) Present value of an annuity of $1 The present value of SI D) The future value of an annuity of si C)