1. Sharpe General Stores borrowed $250,000 for 10 years at a 12 percent interest rate, compounded quarterly, and makes an equal amount of payment at the end of each quarter. What is the loan balance remaining after the 3rd year?

$29,002

$23,420

$19,885

$40,203

$47,255

2. Which of the following statements are correct?

I. The variance is commonly used as a measure of volatility.

II. The greater the variance, the greater the dispersion of actual returns.

III. The higher the standard deviation, the less certain the rate of return in any one given year.

IV. Lower standard deviation is usually associated with the higher expected return.

II and III only

I, III, and IV only

II, III, and IV only

I, II, III, and IV

I and III only