## Question 1 An annuity may be defined as: A. a payment at a fixed interest rate.

Question 1 An annuity may be defined as: A. a payment at a fixed interest rate. B. a series of payments of unequal amount. C. a series of yearly payments. D. a series of consecutive payments of equal amounts.Question 2 You are to receive \$12000 at the end of 5 years. The available yield on investments is 6%. Which table would you use to determine the value of that sum today? A. Present value of an annuity of \$1 B. Future value of an annuity C. Present value of \$1 D. Future value of \$1 Question 3 As the interest rate increases the present value of an amount to be received at the end of a fixed period: A. increases. B. decreases. C. remains the same. D. not enough information to tell Question 4 As the time period until receipt increases the present value of an amount at a fixed interest rate: A. decreases. B. remains the same. C. increases. D. not enough information to tell
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