15) Samantha Jee put $3,000 into a mutual fund yielding a 12 percent annual rate of return. Using the Rule of 72, calculate approximately how long it will take for the investment to double in value. A) Two years B) Two years and four months C) Six years D) Seven years and four months 16) This helpful investment rule-of-thumb tells you approximately how many years it takes for a sum of money to double in size. A) Rule of compound interest B) Rule of 72 C) Rule of 100 D) Rule of future value E) Rule of annuity doubling 17) By the Rule of 72, what annual interest rate would be required to turn $100 into $200 in approximately six years? A) 4% B) 8% C) 12% D) 16% 18) Suppose that you invested $100 in a bank account that earned an annual rate of return of 10%. How much would you have in that bank account at the end of 10 years? A) $259.37 B) $238.55 C) $293.74 D) $214.46 E) $279.23 19) You have just placed $500 in a bank account that earns an annual rate of return of 6%. How much will you have in that bank account after 6 years? A) $652.48 B) $709.26 C) $787.66 D) $758.66 E) $801.68

20) As a future graduation present, you uncle has just placed $6,000 in a bank account that will earn an annual rate of return of 6%. How much will be in that account when you graduate in four years? A) $7,731.55 B) $6,752.56 C) $6,247.70 D) $7,790.63 E) $7,574.86 21) Suppose that you placed $500 in a bank account at the end of each year for the next 10 years. How much would be in that account at the end of the tenth year if the deposits earned an annual rate of return of 8% each year? A) $8,079.46 B) $5,400.00 C) $7,243.28 D) $6,355.04 E) $7,774.51 22) Suppose that you want to create a "college fund" for your newborn child and place $300 in a bank account at the end of each of the next 20 years. If that account earns an annual rate of return of 7%, how much will be in that account at the end of the twentieth year? A) $13,420.00 B) $12,977.53 C) $13,178.20 D) $11,828.32 E) $12,298.65 23) Your great-uncle placed $500 a year in a bank account for your "college fund" for each of the last 18 years. How much is now in your college account (at the end of the eighteenth year) if your account earned an annual rate of return of 6%? A) $15,452.83 B) $15,175.17 C) $16,427.17 D) $15,413.80 E) $15,546.18 24) Which financial planning concepts should be helpful to a couple planning for how much money to start saving for their retirement? A) Reinvesting B) Compound interest C) Future values D) Present values E) All of the above

25) A method by which one can compare cash flows across timeeither as what a future cash flow is worth today (present value) or what an investment made today will be worth in the future (future value)is called A) time-value of money. B) compounding. C) simple interest. D) opportunity cost. 26) You have been saving toward the purchase of a new mountain bike. Five years ago, you placed $600 in a bank account, and you have since earned an annual rate of return of 12 percent. How much do you now have in your account? A) $1,057.41 B) $1,293.71 C) $978.70 D) $1,138.70 27) You have just remembered that four years ago you placed $1,000 in a bank account. If the bank was paying an annual rate of return of 8% during that time, how much should you have in your forgotten account? A) $1,253.03 B) $1,360.49 C) $1,321.92 D) $1,301.92 28) Your great-aunt wants to help with your college graduation party. She has just placed $5,000 dollars in a bank account that will earn an annual rate of return of 6%. If you graduate in four years, how much will be in your party account? A) $7,120.89 B) $6,142.96 C) $5,960.47 D) $6,312.38 29) Suppose that you place $450 in a bank account each year for the next 20 years. How much would be in your bank account at the end of the twentieth year if the deposits earned an annual rate of return of 6% each year? A) $9,540.00 B) $10,876.31 C) $14,729.44 D) $16,553.52