All else being equal, the future value in T years of $X deposited today at an interest rate of r is higher if

Select one:

a.$X is higher, but r and T are lower.

b.$X and r are higher, but T is lower.

c.$X and T are higher, but r is lower.

d.$r and T are higher, but $X is lower.

e.$X, r, and T are all higher.

The concept of "a dollar in hand today is worth more than a dollar promised tomorrow" is commonly referred to as

Select one:

a.interest rate.

b.aggregating.

c.compound interest.

d.time value of money.

e.discounting.

You are in the process of budgeting for your university education. You estimate that you will need about $30,000 to go back to university after three years. You have already saved $18,000. You want to invest this money for the next three years, and then use the future proceeds to finance your university education. What is the minimum annual rate of return you must obtain on your investment to achieve your goal?

Select one:

a.18.56%

b.16.72%

c.12.62%

d.11.89%

e.10.00%

The quantity 1/(1+r)^tis

Select one:

a.the future value interest factor.

b.the present value interest factor.

c.the discount factor.

d.the present value annuity factor.

e.both b and c.

You made a deposit of $100 into your bank account on January 1. On December 31, you receive a statement from your bank that shows an interest amount of $3.04 based on an interest rate of 0.25% per month. This means that the interest on your bank account is ________ interest.

Select one:

a.compound

b.complex

c.continuous

d.simple

e.annual

You invest $25,000 into your portfolio of investments and expect to earn 5% per year for the next 10 years. How much money will you have if you sell these investments at the end of the ninth year?

Select one:

a.$11,250.00

b.$27,013.44

c.$36,250.00

d.$38,783.21

e.$92,546.51

A house in Vancouver is currently valued at $1.5 million. If the average annual growth in Vancouver house prices over the last 10 years was 25%, what was the value of the house seven years ago?

Select one:

a.$606,833.66

b.$370,777.06

c.$314,572.80

d.$211,205.40

e.$161,061.27

Peter wants to buy a tablet computer with a cost of $2,000. If Peter invested $1,500 today in a stock that returns an average annual rate of 8%, how long will Peter have to wait before he has enough money to buy the tablet computer?

Select one:

a.two years and eight months

b.two years and nine months

c.three years and seven months

d.three years and eight months

e.three years and nine months

The National Bank of Wynona offers two types of savings account. The Top-Up-N-Saver account pays 3.5% annual compound interest, whereas the Super-Saver account pays 4% annual simple interest. If we put in $1,000 now and leave the money in the bank account for 10 years, which account would pay the most interest, and how much more?

Select one:

a.The Top-Up-N-Saver account would pay $10.60 more in interest.

b.The Top-Up-N-Saver account would pay $50 more in interest.

c.The Super-Saver account would pay $50 more in interest.

d.The Super-Saver account would pay $10.60 more in interest.

e.Both accounts would pay the same interest.

The basic present value equation is written as

Select one:

a.PV = FV / (1 / (1 + r)^t).

b.PV = FV / (1 + r)^t.

c.PV = FV x (1 + r)^t.

d.PV = FV / (1 - (1 / (1 + r)^t)).

e.PV = FV / ((1 - (1 / (1 + r)^t)) / r).