CFP Practice Exam 1 Questions & Answers 2024/2025

CFP Practice Exam 1 Questions & Answers 2024/2025 According to CFP Board's Code of Ethics and Standards of conduct, A CFP Professional may represent the CFP Professionals or the CFP Professional's Firm's compensation method as "fee only" only under which set of circumstances? - ANSWERSThe CFP Professional and the CFP professional's firm receives no sales related compensation in connection with any professional services the CFP professional or the CFP Professional's firm provides to clients. Henry wants to have $1m in investment assets in his taxable account when he retires in 10 years. Currently he has $100K invested in his account. He anticipates this account will appreciate at an annual rate of 10% before taxes or 8% after taxes. How much must he invest at the end of each month to achieve his goal? - ANSWERSAnswer: $4,253.82 Keystrokes N 120 I: 8/12 PV: -$100K FV: $1,000,000 PMT: Sydney is deciding whether to buy or lease a vehicle for her personal use only. If Sydney's interest rate is 8% per year, which of the following options would be the least expensive way to acquire the new car? 1. She should buy the car w/ no down payment and $700 monthly payments for 5 years. 2. She should buy the car with $6,000 down payment and $600 Monthly payments for 5 years. 3. She should lease the car for $2,000 down, $500 monthly payments for 5 years, and a $10,000 payment at end of lease.