1. The Atkins Brothers recently established a trust fund that will provide annual scholarships of $10,000 indefinitely. These annual scholarships are:
A. an ordinary annuity.
B. an annuity due.
C. amortized payments.
D. a perpetuity.
E. a perpetuity due.
2. Brian pays 1.5 percent per month interest on his credit card account. When his monthly rate is multiplied by 12, the resulting answer is referred to as the:
A. annual percentage rate.
B. compounded rate.
C. effective annual rate.
D. perpetual rate.
E. simple rate.