Part 1. Circle the correct answer. (2.5*12-30) 1. Kattyn needs to invest $5.318 today for her savings account to be worth $8.000 six years from now. Which one of the following terms refers to the $5,318? A Present value B. Compound value C. Future value D. Complex value E. Factor value 2. Lucas expects to receive a sales bonus of $7,500 one year from now. The process of determining how much that bonus is worth today is called: A aggregating. B. discounting. C. simplifying. D. compounding E. extrapolating 3. Kendall is investing $3,333 today at 3 percent annual interest for three years. Which one of the following will increase the future value of that amount? A. Shortening the investment time period B. Paying interest only on the principal amount C. Paying simple interest rather than compound interest D. Paying interest only at the end of the investment period rather than throughout the investment period E. Increasing the interest rate 4. The future value of a lump sum investment will increase if you: A. decrease the interest rate. B. decrease the number of compounding periods C. increase the time period. D. decrease the time period. E. decrease the lump sum amount. 5. Which one of the following is the correct formula for the current value of $600 invested today at 5 percent interest for 6 years? A. PV $600/ 1(1+.06) x 5 B. PV = $600/ [(1 + 05) x 61 C. PV-S600/ (.06 x 5) D. PV S600 / (1 + .05)" E. PV = $600 / (1 + .06)