CRPC EXAM QUESTIONS WITH COMPLETE SOLUTIONS
GUARANTEED PASS BRAND NEW 2025
Richard wants to have an annual retirement income of
$100,000 (payable at the beginning of each year) protected
against 3% inflation.
Assuming a 7% after-tax rate of return and a retirement period
of 30 years, how much money does Richard need in order to
meet his goal?
Explain how you need to input this on the calculator and why. -
ANSWER ->Step One - Set the calculator to BEGIN.
Step Two - Calculate the inflation adjusted rate of return (One
plus the Rate of Return divided by One plus the interest rate,
minus one, multiplied by 100 = the inflation adjusted rate of
return) Put this number in the I/YR
Step Three - 100,000 goes in as a PMT
Step Four - 30 goes in as N
Step Five -Press PV
Richard needs $1,822,042.88 in today's dollars to meet his
needs.
, How do you calculate the inflation-adjusted rate of return? -
ANSWER ->1 plus the Rate of Return
Divided by
1 plus the interest rate
minus one
multiplied by 100
Tom has been promised a stream of $40,000 annual payments
at the end of each year for 25 years. The present value of these
payments discounted at a rate of 5% is which one of the
following amounts? -ANSWER ->Step One - The problem says
END in it so you have to set your calculator to the END mode.
Step two - Enter the $40000 as a PMT
Step Three - Enter 25 as the N.
Step Four - Enter 5 as the I/R
Step Six - Hit PV.
$563,758
Nick wants to maintain the purchasing power of $75,000 (in
today's dollars) in retirement. If inflation continues to average
GUARANTEED PASS BRAND NEW 2025
Richard wants to have an annual retirement income of
$100,000 (payable at the beginning of each year) protected
against 3% inflation.
Assuming a 7% after-tax rate of return and a retirement period
of 30 years, how much money does Richard need in order to
meet his goal?
Explain how you need to input this on the calculator and why. -
ANSWER ->Step One - Set the calculator to BEGIN.
Step Two - Calculate the inflation adjusted rate of return (One
plus the Rate of Return divided by One plus the interest rate,
minus one, multiplied by 100 = the inflation adjusted rate of
return) Put this number in the I/YR
Step Three - 100,000 goes in as a PMT
Step Four - 30 goes in as N
Step Five -Press PV
Richard needs $1,822,042.88 in today's dollars to meet his
needs.
, How do you calculate the inflation-adjusted rate of return? -
ANSWER ->1 plus the Rate of Return
Divided by
1 plus the interest rate
minus one
multiplied by 100
Tom has been promised a stream of $40,000 annual payments
at the end of each year for 25 years. The present value of these
payments discounted at a rate of 5% is which one of the
following amounts? -ANSWER ->Step One - The problem says
END in it so you have to set your calculator to the END mode.
Step two - Enter the $40000 as a PMT
Step Three - Enter 25 as the N.
Step Four - Enter 5 as the I/R
Step Six - Hit PV.
$563,758
Nick wants to maintain the purchasing power of $75,000 (in
today's dollars) in retirement. If inflation continues to average
