Which stream of cash flows is not an example of an annuity?

A) Fixed rate mortgage payment
B) Mortgage payment where the interest rate is reset annually
C) 48 month car payment
D) Interest payment on a 10 year Treasury bond

Answer: B

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________ occurs where a principal is liable for an agent's tortious conduct because of the employment contract between the principal and agent, not because the principal was personally at fault

A) Vicarious liability B) Negligence C) Liability with fault D) Misrepresentation

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A local brokerage firm is offering a zero-coupon certificate of deposit for $10,000. At maturity, three years from now, the investor will receive $14,000. What is the rate of return on this investment?

A) 14 percent B) 13 percent C) 12 percent D) 11 percent

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