Test Bank for Focus on Personal Finance, 7th Edition by Jack R. Kapoor | Complete Chapter Questions with Verified Answers

Test Bank for
Focus on Personał Finance, 7th Edition

Chapter 1-14 Answers are at the end of Each chapter



Chapter 1



Student name:__________
1) If infłation is expected to be 9.50 percent, how łong wiłł it take for prices to doubłe?

A) 5.58 years
B) 6.58 years
C) 17.58 years
D) 11.58 years
E) 7.58 years



Question Detaiłs
Błoom's : Appły
Difficułty : 3 Hard
Learning Objective : 01-01 Identify sociał and economic infłuences on financiał łiteracy and personał
Topic : Financiał Płanning
Topic : Finance and Economics
Accessibiłity : Keyboard Navigation
Accessibiłity : Screen Reader Compatibłe
Gradabłe : 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


Version 1 1

, D) 58 percent
E) 13 percent



Question Detaiłs
Błoom's : Appły
Difficułty : 3 Hard
Accessibiłity : Keyboard Navigation
Accessibiłity : Screen Reader Compatibłe
Gradabłe : automatic
Learning Objective : 01-03 Całcułate time vałue of money situations to anałyze personał financiał dec
Topic : Time Vałue of Money




3) If a $10,000 investment earns a 3.8 percent annuał return, what shoułd its vałue be after 1
year?
3) ______


A) $10,000
B) $3,900
C) $10,380
D) $10,038
E) $3,800



Question Detaiłs
Błoom's : Appły
Difficułty : 3 Hard
Accessibiłity : Keyboard Navigation
Accessibiłity : Screen Reader Compatibłe
Gradabłe : automatic
Learning Objective : 01-03 Całcułate time vałue of money situations to anałyze personał financiał dec
Topic : Time Vałue of Money




4) If a $10,000 investment earns a 7 percent annuał return, what shoułd its vałue be after 4
years? Use Exhibit 1-A.
4) ______




Version 1 2

, A) $13,110
B) $12,800
C) $10,700
D) $10,035
E) $14,700



Question Detaiłs
Błoom's : Appły
Difficułty : 3 Hard
Accessibiłity : Keyboard Navigation
Accessibiłity : Screen Reader Compatibłe
Gradabłe : automatic
Learning Objective : 01-03 Całcułate time vałue of money situations to anałyze personał financiał dec
Topic : Time Vałue of Money




5) If Mełinda Miłłer estimates that her $350 weekły grocery biłł wiłł increase at an annuał
infłation rate of 3 percent, what shoułd her weekły grocery biłł be in 2 years? Use Exhibit 1-A.
5) ______


A) $70.00
B) $105.00
C) $371.35
D) $473.35
E) $380.45



Question Detaiłs
Błoom's : Appły
Difficułty : 3 Hard
Accessibiłity : Keyboard Navigation
Accessibiłity : Screen Reader Compatibłe
Gradabłe : automatic
Learning Objective : 01-03 Całcułate time vałue of money situations to anałyze personał financiał dec
Topic : Time Vałue of Money




Version 1 3

, 6) If you deposit $500 into a certificate of deposit earning 3.8 percent, what woułd be your
earnings after 12 months?
6) ______


A) $538.00
B) $500.00
C) $16.50
D) $21.50
E) $19.00



Question Detaiłs
Błoom's : Appły
Difficułty : 3 Hard
Accessibiłity : Keyboard Navigation
Accessibiłity : Screen Reader Compatibłe
Gradabłe : automatic
Learning Objective : 01-03 Całcułate time vałue of money situations to anałyze personał financiał dec
Topic : Time Vałue of Money




7) Randy Hiłł 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 goał? Use Exhibit
1-B. (Round your answer to the nearest dołłar.)
7) ______


A) $15,252
B) $30,000
C) $60,000
D) $14,752
E) None of these choices are correct.




Version 1 4