Test Bank for Focus on Personal Finance, 7th Edition by Jack R. Kapoor

TEST BANK FOR g g




Focus on Personal Finance, 7th Edition
g g g g g




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




Chapter 1 g




Student name: g




1) If inflation is expected to be 9.50 percent, how long will it take for prices to double?
g g g g g g g g g g g g g g g g




A) 5.58 years g



B) 6.58 years g


C) 17.58 years g


D) 11.58 years g



E) 7.58 years g




Question Details g


Bloom's : Apply
g g g


Difficulty : 3 Hard
g g g g


Learning Objective : 01-01 Identify social and economic influences on financial literacy and personal
g g g g g g g g g g g g g


Topic : Financial Planning
g g g g


Topic : Finance and Economics
g g g g


Accessibility : Keyboard Navigation
g g g g


Accessibility : Screen Reader Compatible
g g g g g


Gradable : automatic
g g g




2) If a $12,000 investment earns interest of $1,560 in 1 year, what is its rate of return?
g g g g g g g g g g g g g g g g



2) g




A) 100 percent g



B) 79 percent
g


C) 26 percent
g




Version 1 g 1

, D) 58 percent
g



E) 13 percent
g




Question Detailsg


Bloom's : Apply
g g g


Difficulty : 3 Hard
g g g g


Accessibility : Keyboard Navigation
g g g


Accessibility : Screen Reader Compatible
g g g g g


Gradable : automatic
g g g


Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
g g g g g g g g g g g g g g


Topic : Time Value of Money
g g g g g g




3) If a $10,000 investment earns a 3.8 percent annual return, what should its value be after 1
g g g g g g g g g g g g g g g g


year?
g



3) g




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



Question Detailsg


Bloom's : Apply
g g g


Difficulty : 3 Hard
g g g g


Accessibility : Keyboard Navigation
g g g


Accessibility : Screen Reader Compatible
g g g g g


Gradable : automatic
g g g


Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
g g g g g g g g g g g g g g


Topic : Time Value of Money
g g g g g g




4) If a $10,000 investment earns a 7 percent annual return, what should its value be after 4
g g g g g g g g g g g g g g g g



years? Use Exhibit 1-A.
g g g g


4) g




Version 1 g 2

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



Question Detailsg


Bloom's : Apply
g g g


Difficulty : 3 Hard
g g g g


Accessibility : Keyboard Navigation
g g g


Accessibility : Screen Reader Compatible
g g g g g


Gradable : automatic
g g g


Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
g g g g g g g g g g g g g g


Topic : Time Value of Money
g g g g g g




5) If Melinda Miller estimates that her $350 weekly grocery bill will increase at an annual
g g g g g g g g g g g g g g



inflation rate of 3 percent, what should her weekly grocery bill be in 2 years? Use Exhibit 1-A.
g g g g g g g g g g g g g g g g g g



5) g




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



Question Detailsg


Bloom's : Apply
g g g


Difficulty : 3 Hard
g g g g


Accessibility : Keyboard Navigation
g g g


Accessibility : Screen Reader Compatible
g g g g g


Gradable : automatic
g g g


Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
g g g g g g g g g g g g g g


Topic : Time Value of Money
g g g g g g




Version 1 g 3

, 6) If you deposit $500 into a certificate of deposit earning 3.8 percent, what would be your
g g g g g g g g g g g g g g g



earnings after 12 months?
g g g g



6) g




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



Question Details g


Bloom's : Apply
g g g


Difficulty : 3 Hard
g g g g


Accessibility : Keyboard Navigation
g g g


Accessibility : Screen Reader Compatible
g g g g g


Gradable : automatic
g g g


Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
g g g g g g g g g g g g g g


Topic : Time Value of Money
g g g g g g




7) Randy Hill wants to retire in 25 years with $1,500,000. If he can earn 10 percent per year
g g g g g g g g g g g g g g g g g



on his investments, how much does he need to deposit each year to reach his goal? Use Exhibit
g g g g g g g g g g g g g g g g g g


1-B. (Round your answer to the nearest dollar.)
g g g g g g g g



7) g




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




Version 1 g 4