They already come with answers, but you need to come up with your additional/complementary explanations on why the answer is correct.

1. If interest rates increase, the future value of a dollar ____________, and the present value of a dollar ____________. 2. As the number of years increases, the future value of a dollar ____________, and the present value of a dollar ____________. 3. As interest rates increase, the future value of an annuity of a dollar ____________, and the present value of an annuity of a dollar ____________. 4. If the number of years increases, the future value of an annuity of a dollar ____________, and the present value of an annuity of a dollar ____________. 5. The future value of an annuity ____________ if the payments are made at the beginning of the year. 6. The present value of an annuity ____________ if the payments are received at the beginning of the year. 7. More frequent compounding ____________ the future value of an annuity. 8. A lower interest rate ____________ the time necessary to accumulate a specified amount. 9. An increase in the margin requirement ____________ the present value of an annuity.

1. increases, decreases 2. increases, decreases 3. increases, decreases 4. increases, increases 5. increases 6. increases 7. increases 8. increases 9. does not affect (no change