Please help solve #1-10 study guide.

AV College Business Mathematiee(BUS 105) Prof. Martin Telezing, Ph.D. CRN 76491 Test # 2 Use the answer sheet attached to write your answers to the Multiplecholoe questions below. Each correct answer is worth 2 points. 1. The Present value of an investment is: a. the amount needed today to achieve a certain future value of that investment b. the amount earned today if a future value is discounted by one period c. None of the above The Future Value of an investment is less than the present value because a. A dollar today is worth more than a dollar tomorrow I). A dollar today is worthless than a dollar tomorrow c. Investors are certain about their nancial future amount The interest is imposed on an investment present value to achieve a future value because a. Investment risk due to future uncertainties b. A way to avoid bad investment c. All of the above Of the Compound interest and the simple interest a. The Compound interest results in a less future value than the simple interest. b. A higher rate results in a greaterfuture value. c. The compound interest results in a greater future value than the simple interest An investment held longer a. Always results in a greater loss I), Usually results in a greater future value c. Is never recommended The simple Interest rate formula is The Maturity Value formula is M = Pll + i)" where P = initial Investment. n = total number of compounding periods and i = interest rate per compounding period. a. Incorrect bu Missing a term c. Correct Sinking fund is a fund set up to receive periodic payments a. To provide money to pay off a loan b. To Accumulate money to use for some future purchase (equipment, build a new factory) c. All of the above 9. Administrators at a community college have decided to build, in 5 years, a new sports complex with two indoor lollmeter swimming pools and a large gymnasium. The cost estimate is $32,500,000. They decide to make end-ofquarter deposits into a fund expected to earn 12% compounded quarterly. The multiplying factor from the table below is a. .02559 a. b. .02905 b. c. .15076 c. 1.21899 1.79087 1. 10408 W mTlo 10. Compound amount = Principal x Number from compound interest table A $25000 amount is invested for 5 years at a 6% interest compounded semiannually. Find the compound interest factor from the table below 1% a; 1 wow ram 13 '3 21s mums: mmwm gas av. 43 Ms 63 ms .49751 .33002 .24623 .19604 ......-._g :5 E '5 Bomqmu.u~ S 25 :5: a; 25 i1 15 5 888335101t1t328555 1.0111\" 1.02010 1.03030 1.04060 1.05101 1.06152 1.07214 1.08286 1.09369 1.10462 1.11567 1.12683 1.13809 1.14947 1.16097 1.17253 1.18430 1.19615 1.20811 1.22019 1.23239 1.24472 1.25716 1.26973 1.28243 1.29526 1.30821 1.32129 1.33450 1.34735 1.01500 1.03023 1.04568 1.06136 1.07728 1.09344 1.10984 1.12649 1.14339 1.16054 1.17795 1.19562 1.21355 1.23176 1.25023 1.26899 1.28802 1.30734 1.32695 1.34686 1.36706 1.38756 1.40838 1.42950 1.45095 1.47271 1.49480 1.51722 1.53998 1.56303 1.02000 1.04040 1.06121 1.08243 1.10408 1.12616 1.14869 1.17166 1.19509 1.21899 1.24337 1.26824 1.2936] 1.31948 1.34537 1.37279 1.40024 1.42825 1.45681 1.48595 1.51567 1.54598 1.57690 1.60844 1.64061 1.67342 1.70689 1.74102 1.77534 1.31 136 1.025(1) 1.030111 1.04000 1.0511!) 1.05063 1.060% 1.08160 1.10250 1.07689 1.09273 1.17486 1.15763 1.10381 1.12551 1.16986 1.21551 1.13141 1.15927 1.21665 1.27628 1.15969 1.19405 1.26532 1.34010 1.18869 1.22987 1.31593 1.40710 1.21340 126677 1.36357 1.47746 1.24336 1.30477 1.42331 1.55133 1.28008 1.34392 1.48024 1.62889 1.31209 1.38423 1.53945 1.71034 1.34489 1.42576 1.60103 1.79586 1.37851 1.46853 1.66507 1.88565 1.41297 1.51259 1.73168 1.97993 1.44330 1.55797 1.30094 2.07393 1.43451 1.60471 1.37293 7.13237 1.52162 1.65285 1.94790 2.29202 1.55966 1.70243 2.02582 2.40662 1.59865 1.75351 2.10685 2.52695 1.63862 1.80611 2.19112 2.65330 1.67958 1.86029 2.27877 2.78596 1.72157 1.91610 2.36992 292526 1.76461 1.97359 2.46472 3.07152 1.30373 2.03279 2.56330 3.22510 1.85394 2.09378 2.66584 3.38635 1.9WZ9 2.15659 2.77247 3.55567 1.94780 2.22129 2.88337 3.73346 1.99650 2.28793 2.99870 3.92013 2.04641 2.35657 3.11865 4.11614 2.09757 2.42726 3.24340 4.32194 1.061110 1.12360 1.19102 1.26248 1.33823 1.41852 1.50363 1.59335 1.68948 1.79035 1.89830 2.01220 2.13293 2.26090 2.39656 2.54035 2.69277 2.85434 3.02560 3.20714 3.39956 3.60354 3.31975 4.04893 4.29187 4.54938 4.82235 5.1 1 16'? 5.41839 5.74349 1.08011) 1.16640 1.25971 1.36049 1.46933 1.58687 1.71332 1.35093 1.99911) 2.15892 2.33164 2.51817 2.71962 2.93719 3.17217 3.42594 3.70002 3.99602 4.31570 4.66096 5.03383 5.43654 5.37146 6.341 18 6.84848 7.39635 7.98806 8.62711 9.31727 10.06266 1.10000 1.2100) 1.3311\" 1.46410 1.61051 1.77156 1.94872 2.14359 2.35795 2.59374 2.85312 3.13843 3.45227 3.79750 4.17725 4.59497 5.05447 5.55992 6.11591 6.72750 7.40025 8.14027 8.95430 9.84973 10.83471 11.91818 13.10999 14.42099 15.86309 17.44940