Question $1$

Which one of the following statements is true?

a$).$ there is a negative relationship between interest rates and future value

b$).$ the longer the time period, the higher the present value is$.$

c$).$ the higher the compounding frequency, the higher the present value is$.$

d$).$ the higher the compounding frequency the higher the future value is$.$

Question $2$

A bank offers annual interest rate of $12\%,$ which one of the following answers is correct for effect annual rate if compounded monthly

a$)12\%$

b$)12\mathrm{.}6825\%$

c$)13\%$

d$)$ none of the above answer is correct

Question $3$

What would the future value of $$125$ be after $8$ years at $8\mathrm{.}5\%$ compound interest?

a$.$ $$205\mathrm{.}83$

b$.$ $$216\mathrm{.}67$

c$.$ $$228\mathrm{.}07$

d$.$ $$240\mathrm{.}08$

e$.$ none of the above answer is correct

Question $4$

You deposit $$1,000$ today in a savings account that pays $3\mathrm{.}5\%$ interest, compounded annually. How much will your account be worth at the end of $25$ years?

a$.$ $$2,245\mathrm{.}08$

b$.$ $$2,363\mathrm{.}24$

c$.$ $$2,481\mathrm{.}41$

d$.$ $$2,605\mathrm{.}48$

e$.$ $$2,735\mathrm{.}75$

Question $5$

Which one of the following statements is not true about ordinary annuity?

a$.$ a series of fixed payment

b$.$ the interval between payment is fixed

c$.$ the payment is made at the beginning of the period

d$.$ the payment is maid at the end of the period.

e$.$ All of the above answers are correct.