The time value of money implies that a dollar received today is worth

a dollar received

tomorrow.

A$)$ more than

B$)$ less than

C$)$ the same as

D$)$ Insufficient data to determine the answer.

An ordinary annuity can be defined as

A$)$ a series of unequal payments at the beginning of each period.

B$)$ a series of equal payments at the end of each period.

C$)$ a lump sum.

D$)$ intermittent payments for ordinary expenses.

Which of the following it not an annuity?

A$)$ Equal monthly payments to your investment account

B$)$ Lottery winnings of $$100$ per month for life

C$)$ Mortgage payments for a fixed rate loan

D$)$ Monthly utility bills

You just won the lottery and want to put some money away for your child's college education. College will cost $$65,000$ in $18$ years. You can earn $8\%$ annually. How much do you need to invest today?

a$)$ Is it a single sum or an annuity.

b$)$ Write here what you are looking ior

c$)$ Fill in the following.

$PV=-,N,=$

$FV=,l^N=$

$PMT=,$

Your answer:

$5.$ Your grandfather placed $$2,000$ in a trust fund for you. In $10$ years the fund will be worth $$5,000.$ What is the rate of return $($interest rate$)$ on the trust fund?

a$)$ Is it a single sum or an annuity.

b$)$ Write here what you are looking for

c$)$ Fill in the following.

$PV=,N,=$

$FV,=,l$

$PMT=$

Your answer: