CRPC® ACTUAL EXAM 2025 ULTIMATE 100 MCQS: MOST
TESTED, CHALLENGING & HIGH-YIELD QUESTIONS
WITH ANSWERS & EXPLANATIONS
1. Bill and Lisa Hahn will need $6,000 monthly in retirement. They expect $3,500 from
Social Security and want a 6% return during retirement. How much do they need at
retirement to fund the income gap for 25 years?
A. $250,000
B. $310,000
C. $389,957
D. $410,400
Answer: C. $389,957
Explanation:
Gap = $2,500/month.
PVAD calculation at 6% annual = 0 FV, PMT = 2,500, N = 25, I/YR = 6
Set calculator to "BEG" mode (beginning of the month payments):
PV = $389,957
2. Tom and Jenny want to save to accumulate $2 million in 25 years with a 7% return. How
much must they save annually (end-of-year)?
A. $29,500
B. $30,400
C. $31,621
D. $33,900
Answer: C. $31,621
Explanation:
Using TVM: FV = 2,000,000, I/YR = 7, N = 25, PV = 0 → Solve PMT = $31,621
,3. Which asset best diversifies long-term government bonds based on correlation?
A. Treasury bills (.12)
B. Gold (-.25)
C. Large stocks (.22)
D. Small stocks (.17)
Answer: B. Gold
Explanation:
Lower correlation = better diversification. Gold has a negative correlation (-.25), best
diversifier.
4. Which one is NOT a key attribute of an investment policy?
A. Realistic
B. Clearly defined
C. Long-term
D. Fluid
Answer: D. Fluid
Explanation:
Policies should be stable, not “fluid.” A fluid policy leads to inconsistent portfolio management.
5. Which of the following is NOT an asset allocation strategy?
A. Alpha
B. Strategic
C. Tactical
D. Core/Satellite
Answer: A. Alpha
Explanation:
Alpha measures performance, not an allocation method. Others are legitimate strategies.
6. At age 63, a client has earned $17,025 and investment income of $30,000. What's the impact
on Social Security?
A. No reduction
B. $1-for-$2 loss over limit
,C. $1-for-$1 reduction
D. $1-for-$3 reduction
Answer: A. No reduction
Explanation:
Only earned income counts toward earnings limit. $17,025 < $21,240 (2023 limit).
7. Roth conversion best benefits:
A. George, 28, income $24,000
B. Mandy, 30, high income
C. Rachel, 63, widow, $70K income
D. Tom, 51, income $90,000
Answer: A. George
Explanation:
Low income = tax-free conversion. Long time horizon = maximum growth benefit.
8. If a bond has a 7% coupon, 20 years to maturity, and market rate is 6%, what's the price?
A. $1,000
B. $893.23
C. $1,115.57
D. $1,074.39
Answer: C. $1,115.57
Explanation:
Price > par when coupon > market rate. Semiannual: PMT = $35, N = 40, I/YR = 3
, 9. Spousal Social Security benefit for 67-year-old Linda whose husband receives $1,500 (PIA)?
A. $750
B. $562.50
C. $1,125
D. $1,500
Answer: A. $750
Explanation:
Spouse at FRA = entitled to 50% of worker’s PIA = $750.
10. Susan delays SS from $1,000/month now to $1,240/month in 3 years. When does delaying
pay off?
A. 3 years
B. 12.5 years
C. 15.5 years
D. Never
Answer: C. 15.5 years
Explanation:
Break-even = $36,000 / $240 = 150 months = 12.5 years + 3 years wait = 15.5 years
11. Best suited for a Roth conversion of $5,000?
A. 28-year-old low-income father
B. 30-year-old executive
C. 63-year-old widow
D. 51-year-old earning $90,000
Answer: A
TESTED, CHALLENGING & HIGH-YIELD QUESTIONS
WITH ANSWERS & EXPLANATIONS
1. Bill and Lisa Hahn will need $6,000 monthly in retirement. They expect $3,500 from
Social Security and want a 6% return during retirement. How much do they need at
retirement to fund the income gap for 25 years?
A. $250,000
B. $310,000
C. $389,957
D. $410,400
Answer: C. $389,957
Explanation:
Gap = $2,500/month.
PVAD calculation at 6% annual = 0 FV, PMT = 2,500, N = 25, I/YR = 6
Set calculator to "BEG" mode (beginning of the month payments):
PV = $389,957
2. Tom and Jenny want to save to accumulate $2 million in 25 years with a 7% return. How
much must they save annually (end-of-year)?
A. $29,500
B. $30,400
C. $31,621
D. $33,900
Answer: C. $31,621
Explanation:
Using TVM: FV = 2,000,000, I/YR = 7, N = 25, PV = 0 → Solve PMT = $31,621
,3. Which asset best diversifies long-term government bonds based on correlation?
A. Treasury bills (.12)
B. Gold (-.25)
C. Large stocks (.22)
D. Small stocks (.17)
Answer: B. Gold
Explanation:
Lower correlation = better diversification. Gold has a negative correlation (-.25), best
diversifier.
4. Which one is NOT a key attribute of an investment policy?
A. Realistic
B. Clearly defined
C. Long-term
D. Fluid
Answer: D. Fluid
Explanation:
Policies should be stable, not “fluid.” A fluid policy leads to inconsistent portfolio management.
5. Which of the following is NOT an asset allocation strategy?
A. Alpha
B. Strategic
C. Tactical
D. Core/Satellite
Answer: A. Alpha
Explanation:
Alpha measures performance, not an allocation method. Others are legitimate strategies.
6. At age 63, a client has earned $17,025 and investment income of $30,000. What's the impact
on Social Security?
A. No reduction
B. $1-for-$2 loss over limit
,C. $1-for-$1 reduction
D. $1-for-$3 reduction
Answer: A. No reduction
Explanation:
Only earned income counts toward earnings limit. $17,025 < $21,240 (2023 limit).
7. Roth conversion best benefits:
A. George, 28, income $24,000
B. Mandy, 30, high income
C. Rachel, 63, widow, $70K income
D. Tom, 51, income $90,000
Answer: A. George
Explanation:
Low income = tax-free conversion. Long time horizon = maximum growth benefit.
8. If a bond has a 7% coupon, 20 years to maturity, and market rate is 6%, what's the price?
A. $1,000
B. $893.23
C. $1,115.57
D. $1,074.39
Answer: C. $1,115.57
Explanation:
Price > par when coupon > market rate. Semiannual: PMT = $35, N = 40, I/YR = 3
, 9. Spousal Social Security benefit for 67-year-old Linda whose husband receives $1,500 (PIA)?
A. $750
B. $562.50
C. $1,125
D. $1,500
Answer: A. $750
Explanation:
Spouse at FRA = entitled to 50% of worker’s PIA = $750.
10. Susan delays SS from $1,000/month now to $1,240/month in 3 years. When does delaying
pay off?
A. 3 years
B. 12.5 years
C. 15.5 years
D. Never
Answer: C. 15.5 years
Explanation:
Break-even = $36,000 / $240 = 150 months = 12.5 years + 3 years wait = 15.5 years
11. Best suited for a Roth conversion of $5,000?
A. 28-year-old low-income father
B. 30-year-old executive
C. 63-year-old widow
D. 51-year-old earning $90,000
Answer: A
