1. The future value of a single deposit of $1,000 will be greater when this amount is compounded:

A. annually

B. semi-annually

C. quarterly

D. monthly

2. The future value of $1,000 compounded annually for 8 years at 12% may be calculated with the following formula:

FV = $1,000 * (1 + 12%)⁸

If the same $1,000 was compounded quarterly, what formula would you use to calculate the FV?

A. FV = $1,000 * (1 + 3%)⁸

B. FV = $1,000 * (1 + 12%)³²

C. FV = $1,000 * (1 + 3%)³²

D. FV = $1,000 * (1 + 12%)²