The interest rate per period can be found by dividing the quoted interest rate by the number of compounding periods. (CSLO 3)

True

False

The present value of multiple cash flows is _____. (CSLO 3)

A.

greater than the sum of the cash flows.

B.

equal to the sum of all the cash flows.

C.

less than the sum of the cash flows.

D.

higher or lower than the cash flows depending on the interest rate.

In ordinary annuities, cash flows occur at the beginning of each period. (CSLO 3)

A.

True

B.

False