Page 1 of 114
FP511 PRACTICE EXAM NEWEST 2026 ACTUAL
EXAM QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) ALL ANSWERED
{170 Q & A} ALREADY GRADED A+ | BRAND NEW! |
100% GUARANTEED PASS
Which of the following statements regarding Statements of Cash
Flows is CORRECT?
1 The cash flow statement helps to determine a client's savings
level.
2 The three components of the cash flow statement are assets,
liabilities, and net worth.
3 A statement of cash flows represents a "snapshot" of a client's
status as of a given date.
4 "For the period January 1, 20XX to December 31, 20XX" is an
appropriate way to indicate the period covered by the cash flow
statement. - ✔✔✔ Correct Answer > 1,4
It is the statement of financial position which represents a
"snapshot" of a client's status on a particular date. The three
components of the cash flow statement are cash inflows, cash
outflows, and net cash flow. The cash flow statement reflects the
client's financial activity over a period of time. The correct way to
indicate the period covered is: For the period January 1, 20XX to
,Page 2 of 114
December 31, 20XX. Usually the cash flow statement is prepared
for the calendar year period.
Which of the following statements concerning the Consumer
Credit Protection Act is CORRECT?
1 Credit terms must be disclosed before extending credit.
2 Consumer liability for a lost or stolen credit card is limited to
$100.
3 Interest must be reported in terms of annual percentage rate
(APR).
4 Credit bureau reports must include accurate, relevant, and
recent information. - ✔✔✔ Correct Answer > 1,3
Statement II is incorrect because a cardholder is liable for only
$50 in unauthorized charges if he reports the card as lost or
stolen. Statement IV is incorrect as it is a requirement of the
Consumer Credit Reporting Act, not the Consumer Credit
Protection Act. The Consumer Credit Protection Act also requires
that applicants who are denied credit must be offered the reason
*** Meghan is planning for her son's college education. She
would like her son, who was born today, to attend a public
university for four years beginning at age 18. Tuition is currently
$15,000 a year and has increased at an annual rate of 6%, while
,Page 3 of 114
inflation has only increased at 2.5% per year. Meghan can earn an
investment rate of return of 9%. How much must she save at the
end of each year if she wants to make the last payment at the
beginning of her son's first year of college? Round to the nearest
dollar. - ✔✔✔ Correct Answer > $3,979.
Keystrokes on the HP 10bII/HP 10bII+ are as follows:
Uneven Cash Flow Method
Step 1: Determine the PV of the years of tuition at age 18:
0, CFj
0, CFj
17, DOWNSHIFT, Nj
15000, CFj
4, DOWNSHIFT, Nj
[(1.09 ÷ 1.06) − 1] × 100 = 2.8302 I/YR NPV = $34,834.5585
Step 2: Determine the annual payments needed to fund college
tuition costs:
34834.5585, PV
18, N
9, I/YR
PMTOA = ($3,978.5347), rounded to $3,979
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*** Henry's son, Brock, turned six years old today. Henry has
plans for Brock to attend a four-year private university at age 18.
Currently, tuition is $46,500 per year and is expected to increase
at 6.5% per year. Henry can earn an annual compound investment
return of 9%. Calculate the lump sum that he needs on Brock's
first day of college to be able to pay for his entire college
education. - ✔✔✔ Correct Answer > $382,594.77.
Step 1 Determine the future cost of college for the first year:
46,500 +/- PV
6.5 I/YR
12 N
Solve for FV = 99,002.9752, or $99,002.98
Step 2 Determine the account balance necessary to fund college
education:
BEG mode (money is needed at the beginning of college)
99,002.9752 +/- PMT
2.3474 I/YR [(1.09 ÷ 1.065) - 1] × 100 = 2.3474
4N
Solve for PV = 382,594.7657, or $382,594.77
FP511 PRACTICE EXAM NEWEST 2026 ACTUAL
EXAM QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) ALL ANSWERED
{170 Q & A} ALREADY GRADED A+ | BRAND NEW! |
100% GUARANTEED PASS
Which of the following statements regarding Statements of Cash
Flows is CORRECT?
1 The cash flow statement helps to determine a client's savings
level.
2 The three components of the cash flow statement are assets,
liabilities, and net worth.
3 A statement of cash flows represents a "snapshot" of a client's
status as of a given date.
4 "For the period January 1, 20XX to December 31, 20XX" is an
appropriate way to indicate the period covered by the cash flow
statement. - ✔✔✔ Correct Answer > 1,4
It is the statement of financial position which represents a
"snapshot" of a client's status on a particular date. The three
components of the cash flow statement are cash inflows, cash
outflows, and net cash flow. The cash flow statement reflects the
client's financial activity over a period of time. The correct way to
indicate the period covered is: For the period January 1, 20XX to
,Page 2 of 114
December 31, 20XX. Usually the cash flow statement is prepared
for the calendar year period.
Which of the following statements concerning the Consumer
Credit Protection Act is CORRECT?
1 Credit terms must be disclosed before extending credit.
2 Consumer liability for a lost or stolen credit card is limited to
$100.
3 Interest must be reported in terms of annual percentage rate
(APR).
4 Credit bureau reports must include accurate, relevant, and
recent information. - ✔✔✔ Correct Answer > 1,3
Statement II is incorrect because a cardholder is liable for only
$50 in unauthorized charges if he reports the card as lost or
stolen. Statement IV is incorrect as it is a requirement of the
Consumer Credit Reporting Act, not the Consumer Credit
Protection Act. The Consumer Credit Protection Act also requires
that applicants who are denied credit must be offered the reason
*** Meghan is planning for her son's college education. She
would like her son, who was born today, to attend a public
university for four years beginning at age 18. Tuition is currently
$15,000 a year and has increased at an annual rate of 6%, while
,Page 3 of 114
inflation has only increased at 2.5% per year. Meghan can earn an
investment rate of return of 9%. How much must she save at the
end of each year if she wants to make the last payment at the
beginning of her son's first year of college? Round to the nearest
dollar. - ✔✔✔ Correct Answer > $3,979.
Keystrokes on the HP 10bII/HP 10bII+ are as follows:
Uneven Cash Flow Method
Step 1: Determine the PV of the years of tuition at age 18:
0, CFj
0, CFj
17, DOWNSHIFT, Nj
15000, CFj
4, DOWNSHIFT, Nj
[(1.09 ÷ 1.06) − 1] × 100 = 2.8302 I/YR NPV = $34,834.5585
Step 2: Determine the annual payments needed to fund college
tuition costs:
34834.5585, PV
18, N
9, I/YR
PMTOA = ($3,978.5347), rounded to $3,979
, Page 4 of 114
*** Henry's son, Brock, turned six years old today. Henry has
plans for Brock to attend a four-year private university at age 18.
Currently, tuition is $46,500 per year and is expected to increase
at 6.5% per year. Henry can earn an annual compound investment
return of 9%. Calculate the lump sum that he needs on Brock's
first day of college to be able to pay for his entire college
education. - ✔✔✔ Correct Answer > $382,594.77.
Step 1 Determine the future cost of college for the first year:
46,500 +/- PV
6.5 I/YR
12 N
Solve for FV = 99,002.9752, or $99,002.98
Step 2 Determine the account balance necessary to fund college
education:
BEG mode (money is needed at the beginning of college)
99,002.9752 +/- PMT
2.3474 I/YR [(1.09 ÷ 1.065) - 1] × 100 = 2.3474
4N
Solve for PV = 382,594.7657, or $382,594.77
