Question 6

Using the rule of 72, how long will it take $1,000 to double if you earn 6% interest per year?

6 years

7.2 years

10 years

12 years

Cannot calculate with the information provided.

Question 7

Which of the following is true for Fixed Principal Commercial Loans?

The borrower will probably be required to make a 20 percent down payment.

The borrower does not have to make a down payment.

The bank calculates the total interest due even on variable interest loans.

The bank provides an amortization schedule with a variable interest loan.

Question 15

In an ordinary annuity, payments are made at the end of each period.

True

False