Run the timing gates

Exercise and reference answers

Questions

1. Correct

   Ordinary

   Choices

   1. Ordinary
   2. Annuity due
   3. Neither

2. Correct

   Annuity due

   Choices

   1. Ordinary
   2. Annuity due
   3. Neither

3. Correct

   Discounting

   Choices

   1. Discounting
   2. Compounding
   3. Neither

4. Correct

   Compounding

   Choices

   1. Discounting
   2. Compounding
   3. Neither

5. Correct

   Effective rate

   Choices

   1. Stated rate
   2. Effective rate
   3. Neither

6. Correct

   Stated rate

   Choices

   1. Stated rate
   2. Effective rate
   3. Neither

Instructions

Pick the timing, then the direction, then the rate.

Explanation