An annuity due means that the
payments occur:
a. 
At the end of the period 

b. 
At the beginning of the period 

c. 
In the middle of the period 
 An annuity due is worth more
than an annuity because:
a. 
Each payment is compounded for 

b. 
Each payment is compounded for 

c. 
Each payment is discounted for 
 If the formula for the
future value of an amount of money is FV= PV(1+I)^{n} , then
the formula for the PV of an amount of money is:
a. 
PV = FV/(1+I)^{n} 

b. 
PV = FV + I 

c. 
PV = FV/I^{n} 
 In the formula for the future
value of an amount of money FV= PV(1+I)^{n} , N is equal to:
a. 
Nominal interest rate 

b. 
Negative 1 

c. 
Number of periods 