1. What would be the future value of a $120 investment 3 years from now at a 15 percent annual compound interest rate?

   a-$120 b-$100. c-$82.5. d-$182.5

2. What is the shortcut method used to approximate the time required for an investment to double in value called?

   a-Rule of 36. b-Rule of numbers. c-Rule of division. d- Rule of 72

4. What is the price of loanable funds in financial markets called?

   a- Disequilibrium interest rate b-Demand of loanable funds c-interest rates. d- Supply of loanable funds

5. Which of the following is the name for the risk of changes in the price or value of fixed-rate debt instruments resulting from changes in market interest rates?

   a-Liquidity risk. b-inflation risk. c-Interest rate risk. d-Default risk

6. What does the risk-return finance principal imply?

   a-Default risk premiums are zero b-Lower returns are expected for taking on more risk c-Higher returns are expected for taking on more risk d-Money has a time value