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1) When the amount earned on a deposit has become part of the principal at the end of a specified time period the concept is called A) discount interest. B) compound interest. C) primary interest. D) future value. 2) The future value of $100 received today and deposited at 6 percent for four years is A) $126. B) $ 79. C) $124. D) $116. 3) The future value of $200 received today and deposited at 8 percent for three years is A) $248. B) $252. C) $158. D) $200. 4) The amount of money that would have to be invested today at a given interest rate over a specified period in order to equal a future amount is called A) future value. B) present value. C) future value of an annuity. D) present value of an annuity. 5) The future value of a dollar ________ as the interest rate increases and ________ the farther in the future an initial deposit is to be received. A) decreases; decreases B) decreases; increases C) increases; increases D) increases; decreases 6) The present value of $100 to be received 10 years from today, assuming an opportunity cost of 9 percent, is A) $236. B) $699. C) $ 42. D) $ 75.

1) When the amount earned on a deposit has become part of the principal at the end of a specified time period the concept is called A) discount interest. B) compound interest. C) primary interest. D) future value. 2) The future value of $100 received today and deposited at 6 percent for four years is A) $126. B) $ 79. C) $124. D) $116. 3) The future value of $200 received today and deposited at 8 percent for three years is A) $248. B) $252. C) $158. D) $200. 4) The amount of money that would have to be invested today at a given interest rate over a specified period in order to equal a future amount is called A) future value. B) present value. C) future value of an annuity. D) present value of an annuity. 5) The future value of a dollar ________ as the interest rate increases and ________ the farther in the future an initial deposit is to be received. A) decreases; decreases B) decreases; increases C) increases; increases D) increases; decreases 6) The present value of $100 to be received 10 years from today, assuming an opportunity cost of 9 percent, is A) $236. B) $699. C) $ 42. D) $ 75.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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PLEASE help me answer these questions, thank you very much.

1) When the amount earned on a deposit has become part of the principal at the end of a specified time period the concept is called

  1. A) discount interest.
  2. B) compound interest.
  3. C) primary interest.
  4. D) future value.

2) The future value of $100 received today and deposited at 6 percent for four years is

  1. A) $126.
  2. B) $ 79.
  3. C) $124.
  4. D) $116.

3) The future value of $200 received today and deposited at 8 percent for three years is

  1. A) $248.
  2. B) $252.
  3. C) $158.
  4. D) $200.

4) The amount of money that would have to be invested today at a given interest rate over a specified period in order to equal a future amount is called

  1. A) future value.
  2. B) present value.
  3. C) future value of an annuity.
  4. D) present value of an annuity.

5) The future value of a dollar ________ as the interest rate increases and ________ the farther in the future an initial deposit is to be received.

  1. A) decreases; decreases
  2. B) decreases; increases
  3. C) increases; increases
  4. D) increases; decreases

6) The present value of $100 to be received 10 years from today, assuming an opportunity cost of 9 percent, is

A) $236.

B) $699.

C) $ 42.

D) $ 75.

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