1. A perpetuity differs from an annuity because:

	perpetuity payments vary with the market rate of interest.
	perpetuity payments are variable while annuity payments are constant.
	perpetuity payments never stop.
	annuity payments never stop.

2. If you need to compare different options to pick the best investment which rate do you need to compare?

	APR.
	PR.
	EAR.
	any one of the above.

3. Calculating the present value of a cash which will be received sometime in the future is called:

	Compounding.
	Time value of money.
	Discounting.
	Discount factor.

4. If you make the same monthly payments in the beginning of every month for 2 years this cash flow stream is called

	Single cash flow
	Annuity
	Annuity Due
	Perpetuity

5. You invest $250 dollar today in a bank that pays this amazing interest rate of 0.6% per day. What is the future value at the end of 1st year?

	$1543.66
	$2219.23
	$3189.31
	$4581.78

6. You have just signed a contract for your rental property and you will make monthly payments at the beginning of each month. Your monthly payments is $1000 and the monthly rate is 4% per month. Calculate the present value of your rental payments for the first year.

	$11367.63
	$10786.85
	$10252.62
	$9760.48

7. You buy a laptop for $1200 and the store allows you make quarterly payments. They charge 2% per quarter and loan period is 5 years. How much is your quarterly payment?

	$163.81
	$113.47
	$88.38
	$73.39

8. A bookstore sold 300000 books this year and hoping to increase the sales by 10% every year. What is expected sales in five years from now?

	483153.00
	644204.00
	805255.00
	966306.00

9. You borrow $450000 for your new house and your loan period is 15 years. Interest rate is 3% compounded monthly. What is the principal portion of the 5th payment?

	$2002.52
	$2007.52
	$2012.54
	$2017.57