TB
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Focus on Personal Finance 7th Edition by Jack R.
Kapoor, Les R. Dlabay| TEST BANK
e r
Chapter 1-14| All Chapters Comprising of Verified
Questions & 100% Accurate Answers for the Study
All Answers are at the End of Each Chapter
Page | 1
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Chapter 1: Personal Financial Planning in Action
1) If inflation is expected to be 9.50 percent, how long will it take for prices to double?
e r
1)
A) 5.58 years
B) 6.58 years
C) 17.58 years
D) 11.58 years
E) 7.58 years
Question Details Bloom's : Apply Difficulty : 3 Hard
Learning Objective : 01-01 Identify social and economic influences on financial literacy and personal
Topic : Financial Planning
Topic : Finance and Economics Accessibility : Keyboard Navigation Accessibility : Screen Reader
Compatible Gradable : automatic
2) If a $12,000 investment earns interest of $1,560 in 1 year, what is its rate of return?
2)
A) 100 percent
B) 79 percent
C) 26 percent
D) 58 percent
E) 13 percent
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
3) If a $10,000 investment earns a 3.8 percent annual return, what should its value be after 1 year?
3)
A) $10,000
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B) $3,900
C) $10,380
e r
D) $10,038
E) $3,800
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
4) If a $10,000 investment earns a 7 percent annual return, what should its value be after 4 years?
Use Exhibit 1-A.
4)
A) $13,110
B) $12,800
C) $10,700
D) $10,035
E) $14,700
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
5) If Melinda Miller estimates that her $350 weekly grocery bill will increase at an annual inflation
rate of 3 percent, what should her weekly grocery bill be in 2 years? Use Exhibit 1-A.
5)
A) $70.00
B) $105.00
C) $371.35
D) $473.35
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E) $380.45
Question Details Bloom's : Apply Difficulty : 3 Hard
e r
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
6) If you deposit $500 into a certificate of deposit earning 3.8 percent, what would be your earnings
after 12 months?
6)
A) $538.00
B) $500.00
C) $16.50
D) $21.50
E) $19.00
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
7) Randy Hill wants to retire in 25 years with $1,500,000. If he can earn 10 percent per year on his
investments, how much does he need to deposit each year to reach his goal? Use Exhibit 1-B. (Round
your answer to the nearest dollar.)
7)
A) $15,252
B) $30,000
C) $60,000
D) $14,752
E) None of these choices are correct.
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Page | 4
Ac
Focus on Personal Finance 7th Edition by Jack R.
Kapoor, Les R. Dlabay| TEST BANK
e r
Chapter 1-14| All Chapters Comprising of Verified
Questions & 100% Accurate Answers for the Study
All Answers are at the End of Each Chapter
Page | 1
, TB
Ac
Chapter 1: Personal Financial Planning in Action
1) If inflation is expected to be 9.50 percent, how long will it take for prices to double?
e r
1)
A) 5.58 years
B) 6.58 years
C) 17.58 years
D) 11.58 years
E) 7.58 years
Question Details Bloom's : Apply Difficulty : 3 Hard
Learning Objective : 01-01 Identify social and economic influences on financial literacy and personal
Topic : Financial Planning
Topic : Finance and Economics Accessibility : Keyboard Navigation Accessibility : Screen Reader
Compatible Gradable : automatic
2) If a $12,000 investment earns interest of $1,560 in 1 year, what is its rate of return?
2)
A) 100 percent
B) 79 percent
C) 26 percent
D) 58 percent
E) 13 percent
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
3) If a $10,000 investment earns a 3.8 percent annual return, what should its value be after 1 year?
3)
A) $10,000
Page | 2
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Ac
B) $3,900
C) $10,380
e r
D) $10,038
E) $3,800
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
4) If a $10,000 investment earns a 7 percent annual return, what should its value be after 4 years?
Use Exhibit 1-A.
4)
A) $13,110
B) $12,800
C) $10,700
D) $10,035
E) $14,700
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
5) If Melinda Miller estimates that her $350 weekly grocery bill will increase at an annual inflation
rate of 3 percent, what should her weekly grocery bill be in 2 years? Use Exhibit 1-A.
5)
A) $70.00
B) $105.00
C) $371.35
D) $473.35
Page | 3
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Ac
E) $380.45
Question Details Bloom's : Apply Difficulty : 3 Hard
e r
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
6) If you deposit $500 into a certificate of deposit earning 3.8 percent, what would be your earnings
after 12 months?
6)
A) $538.00
B) $500.00
C) $16.50
D) $21.50
E) $19.00
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
7) Randy Hill wants to retire in 25 years with $1,500,000. If he can earn 10 percent per year on his
investments, how much does he need to deposit each year to reach his goal? Use Exhibit 1-B. (Round
your answer to the nearest dollar.)
7)
A) $15,252
B) $30,000
C) $60,000
D) $14,752
E) None of these choices are correct.
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Page | 4
