Please answer all questions or don't answer at all..

Introduction to Valuation: The Time Value of Money 21. You are investing $100 today in a savings account at your local bank. Which one of the following terms refers to the value of this investment one year from now? A Future value B. Present value c. Principal amounts. D. Discounted value E. Invested principal 22. Christina invested $3,000 five years ago and carns 2 percent interest on her investment. By leaving her interest earnings in her account, she increases the amount of interest she earns cach year. The way she is handling her interest income is referred to as which one of the following? Simplifying Compounding Aggregation Accumulation E. Discounting A B C. D 23. Art invested $100 two years ago at 8 percent interest. The first year, he eamed S8 interest on his $100 investment. He reinvested the S8. The second year, he earned $8.64 interest on his 108 investment. The extra S.64 he camed in interest the second year is referred to as: A Free interest B Bonus income c. Simple interest D. Interest on interest E Present value interest A 24. Interest earned on both the initial principal and the interest reinvested from prior periods is called: Free interest Dual interest Simple interest Interest on interest Compound interest C. D. E 25. Renee invested S2,000 six years ago at 4.5 percent interest. She spends her carings as soon as she earns any interest so she only receives interest on her initial $2,000 investment. Which type of interest is she earning? A Free interest B Complex interest C Simple interest D Interest on interest E Compound interest Page 3 of 6