1. Sandy Foot Hospital expanded their cardiovascular unit to include more operating rooms. They negotiated a 20-year loan with monthly payments and a large sum of $250,000 due at the end of the loan. How much will Sandy Foot Hospital have to invest today to meet the $250,000 payment in 8 years, assuming cash could be invested at 4% interest?

   Period	1%	2%	4%	6%
   5	0.951	0.906	0.822	0.747
   6	0.942	0.888	0.790	0.705
   7	0.933	0.871	0.760	0.665
   8	0.923	0.853	0.731	0.627
   9	0.914	0.837	0.703	0.592
   10	0.905	0.820	0.676	0.558

   a. $182,750

   b. $175,750

   c. $190,000

   d. $237,750

2. Sally Greene wants to estimate the approximate number of years required for a health care investment to double. The annual interest rate of the investment is 8%. Using the rule of 72, how many years will it take for the investment to double?

   a. 2

   b. 7

   c. 9

   d. 14

3. Jimmy Chue wants to estimate the approximate number of years required for a health care investment to double. The annual interest rate of the investment Jimmy is researching is 9%. Using the rule of 72, how many years will the investment take to double?

   a. 2

   b. 6

   c. 8

   d. 10

4. Which of the following would not represent an investment security?

   a. Bank deposit

   b. Fixed rate loan

   c. Foreign exchange risk

   d. Corporate stocks

5. Which of the following is not a major principle of investing funds?

   a. If you see a current investment trend, you should invest even if you do not understand it.

   b. The time value of money is based on interest.

   c. Investors can be rewarded for the risks they take.

   d. Investing requires an understanding of the market and securities.

6. Dr. Teetherly has a general medical practice in Colorado where she sees patients regularly during the winter months. During the months of April, May, and June, Dr. Teetherly experiences a negative cash flow and needs a loan for approximately 90 days. The local bank will offer which type of loan for Dr. Teetherly?

   a. Single payment loan

   b. Balloon loan

   c. Line of credit

   d. Term loan