The rule of 72 is a short-cut method to calculate what interest rate you have to earn to _______________ any amount, given you know how long the compounding period is.

Group of answer choices

triple

quadruple

double

Other things being equal, how should the present value of a perpetuity be affected if there is a decline in the interest rate?

Group of answer choices

Increase.

Decrease.

No change.

What is the timing of the present value of an annuity when you use the TVM keys for the calculation?

Group of answer choices

Always at time 0.

One period before the first payment.

Always at the last payment.

How much interest are you saving if you pay off a loan early with the following information? The annual payment is $700, the loan balance you are to pay off is $3,236, the annual interest rate is 8%, and there are 6 annual payments remaining.

Group of answer choices

$2,536

$964

$3,236

$0