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WGU D363 PERSONAL FINANCE 2026/2027 STUDY GUIDE |
VERIFIED QUESTIONS & ANSWERS | COMPLETE SOLUTIONS |
OBJECTIVE ASSESSMENT PREP
An individual wants to build up an emergency fund in a savings account.
Monthly expenses for this individual total $4,000 per month, while
monthly income is $5,000.
How much can be saved if the individual wants to build up two months'
worth of income savings?
A) $1,000
B) $2,000
C) $4,000
D) $5,000
B) $2,000
An individual wants to make a large purchase that will take two years to
pay off. The individual owns a home, earns an income of $75,000, and
has no other debt aside from a $900 mortgage payment with five years
left at 3%. The individual will retire within one year and will be required
to take minimum distributions from a traditional retirement account.
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Which financing option is appropriate for this individual's financing
objective?
A) A one-time credit card purchase
B) A home equity line of credit
C) An early distribution from retirement accounts
D) A consumer finance company loan
B) A home equity line of credit
An individual's net earnings are $60,000 per year, with living expenses
for housing, food, and transportation amounting to $3,200 per month.
The individual wants to save $30,000 for a home down payment and
plans to travel once a year, with the trip costing $3,000.
How long until the individual can fund both goals for the same year if
income and expenses stay consistent?
A) 1 year and 8 months
B) 2 years and 9 months
C) 3 years and 2 months
D) 3 years and 4 months
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A) 1 year and 8 months
A cost-sensitive individual utilizes an advisory firm for financial planning
and investment management with a conservative risk profile. The client
pays $1,000 per year for a financial plan and $100 per year in
investment product expenses.
Which possible outcome can complicate this individual's expectations
based on the risk profile and needs?
A) Firm's allocation projecting a short investment time horizon
B) Firm recommendations not meeting investment risk appetite
C) Firm's fees exceeding overall investment returns
D) Firm's product offering increasing in cost annually
C) Firm's fees exceeding overall investment returns
Jack is a freelance technical writer receiving a 1099 form from every
client paying over $600, and Jack earns between $60,000 and $65,000
per year. Jack also has increased monthly expenses to $4,000 per
month, as spending needs have increased after Jack quit a job last year
that paid $55,000 in W-2 wages.
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How should Jack modify financial planning around this employment
change?
A) Fund an investment account to increase money available for future
tax payments
B) Maximize business deductions and aggregate savings for higher tax
obligations
C) Maintain deductible expense spending to have the highest possible
tax write-offs
D) Make large cash donations to charitable causes to deduct against
taxable income
B) Maximize business deductions and aggregate savings for higher tax
obligations
An individual earns $75,000 annually. Monthly rent is $2,200, and 20%
of monthly cash income is spent on utilities, groceries, and
transportation. To pay off a credit card in six months, the client agrees
to monthly payments of $1,650.What is the monthly debt-to-income
ratio?
A) 25.6
B) 26.4
C) 32.5
D) 33.2
B) 26.4
WGU D363 PERSONAL FINANCE 2026/2027 STUDY GUIDE |
VERIFIED QUESTIONS & ANSWERS | COMPLETE SOLUTIONS |
OBJECTIVE ASSESSMENT PREP
An individual wants to build up an emergency fund in a savings account.
Monthly expenses for this individual total $4,000 per month, while
monthly income is $5,000.
How much can be saved if the individual wants to build up two months'
worth of income savings?
A) $1,000
B) $2,000
C) $4,000
D) $5,000
B) $2,000
An individual wants to make a large purchase that will take two years to
pay off. The individual owns a home, earns an income of $75,000, and
has no other debt aside from a $900 mortgage payment with five years
left at 3%. The individual will retire within one year and will be required
to take minimum distributions from a traditional retirement account.
,2|Page
Which financing option is appropriate for this individual's financing
objective?
A) A one-time credit card purchase
B) A home equity line of credit
C) An early distribution from retirement accounts
D) A consumer finance company loan
B) A home equity line of credit
An individual's net earnings are $60,000 per year, with living expenses
for housing, food, and transportation amounting to $3,200 per month.
The individual wants to save $30,000 for a home down payment and
plans to travel once a year, with the trip costing $3,000.
How long until the individual can fund both goals for the same year if
income and expenses stay consistent?
A) 1 year and 8 months
B) 2 years and 9 months
C) 3 years and 2 months
D) 3 years and 4 months
,3|Page
A) 1 year and 8 months
A cost-sensitive individual utilizes an advisory firm for financial planning
and investment management with a conservative risk profile. The client
pays $1,000 per year for a financial plan and $100 per year in
investment product expenses.
Which possible outcome can complicate this individual's expectations
based on the risk profile and needs?
A) Firm's allocation projecting a short investment time horizon
B) Firm recommendations not meeting investment risk appetite
C) Firm's fees exceeding overall investment returns
D) Firm's product offering increasing in cost annually
C) Firm's fees exceeding overall investment returns
Jack is a freelance technical writer receiving a 1099 form from every
client paying over $600, and Jack earns between $60,000 and $65,000
per year. Jack also has increased monthly expenses to $4,000 per
month, as spending needs have increased after Jack quit a job last year
that paid $55,000 in W-2 wages.
, 4|Page
How should Jack modify financial planning around this employment
change?
A) Fund an investment account to increase money available for future
tax payments
B) Maximize business deductions and aggregate savings for higher tax
obligations
C) Maintain deductible expense spending to have the highest possible
tax write-offs
D) Make large cash donations to charitable causes to deduct against
taxable income
B) Maximize business deductions and aggregate savings for higher tax
obligations
An individual earns $75,000 annually. Monthly rent is $2,200, and 20%
of monthly cash income is spent on utilities, groceries, and
transportation. To pay off a credit card in six months, the client agrees
to monthly payments of $1,650.What is the monthly debt-to-income
ratio?
A) 25.6
B) 26.4
C) 32.5
D) 33.2
B) 26.4
