FHCE 3200 Questions Exam And
Complete Answers
"I want to retire with $1,000,000 in the bank" represents what element(s) of a SMART
goal?
a) specific
b) attainable
c) realistic
d) all of the above - Answer d
assume you can earn 1% interest monthly on your savings. what is your APR and APY? -
Answer APR: 12%
APY: 12.68%
How many years it will take to grow $3,000 to $6,000 earning 3% interest? - Answer 72/3
= 23.45 (~24 years)
What interest rate will turn $3,000 into $6,000 over 6 years? - Answer 72/6 = 12%
Let's say that you receive $1,000 at your college graduation. If you invest the gift and
earn 8% annually, how much will you have in 20 years? - Answer $4,660.96
You are offered the choice of taking $1,000 today or $1,200 in 5 years. Let's say you can
earn 5%. - Answer PV = $940.23
How much will you accumulate in 20 years if you start saving $1,000 every year and earn
9% on your savings? - Answer FVA = $51,160.11
Imagine that you have just received a large inheritance with the following choice: (1)
take a lump sum of $1,000,000 today or (2) receive $75,000 per year for the next 20
years. The interest rate is 5%. - Answer PVA = $934,665
Amy has $3,000 saved to buy a new car. If she can earn a 7% rate of return for 3 years,
how much will she have (approximately) at the end of the 3 years?
a. $3,210
b. $3,630
c. $3,675
d. $3,884 - Answer c
Which of the following is an example of a SMART goal?
, a) Retiring at age 65 with enough money to live comfortably
b) Purchasing a new 65-foot sailboat in 3 years
c) Starting a business in a few years that will generate $300,000 in net sales
d) Saving $75,000 for the down payment on a home that will be purchased in 4 years -
Answer d
Burt makes $3,300 per month.
He pays $800 in taxes, $700 in rent, $450 on food, $225 for a car payment, $150 in gas
and maintenance, and $700 in entertainment every month.
What is Burt's surplus or deficit?
a. $0
b. $25
c. $275
d. -$25 - Answer c (surplus)
Assume Maria earns $8.50 per hour. If she receives "time and a half" for any hours
worked more than 40 per week, how much will Maria earn if she works 50 hours this
week?
a. $425.00
b. $450.00
c. $467.50
d. $637.50 - Answer c
Yolinda and Wes decide to go into business together. What form of partnership
arrangement can they use to limit their individual and joint liability?
a. Limited liability partnership
b. Limited liability company
c. Limited sole proprietorship
d. Either a limited liability partnership or a limited liability
company - Answer b
Someone who takes risks with his or her money by buying assets or shares in a
company in hopes of receiving unearned income in the form of dividends is called a(n):
Complete Answers
"I want to retire with $1,000,000 in the bank" represents what element(s) of a SMART
goal?
a) specific
b) attainable
c) realistic
d) all of the above - Answer d
assume you can earn 1% interest monthly on your savings. what is your APR and APY? -
Answer APR: 12%
APY: 12.68%
How many years it will take to grow $3,000 to $6,000 earning 3% interest? - Answer 72/3
= 23.45 (~24 years)
What interest rate will turn $3,000 into $6,000 over 6 years? - Answer 72/6 = 12%
Let's say that you receive $1,000 at your college graduation. If you invest the gift and
earn 8% annually, how much will you have in 20 years? - Answer $4,660.96
You are offered the choice of taking $1,000 today or $1,200 in 5 years. Let's say you can
earn 5%. - Answer PV = $940.23
How much will you accumulate in 20 years if you start saving $1,000 every year and earn
9% on your savings? - Answer FVA = $51,160.11
Imagine that you have just received a large inheritance with the following choice: (1)
take a lump sum of $1,000,000 today or (2) receive $75,000 per year for the next 20
years. The interest rate is 5%. - Answer PVA = $934,665
Amy has $3,000 saved to buy a new car. If she can earn a 7% rate of return for 3 years,
how much will she have (approximately) at the end of the 3 years?
a. $3,210
b. $3,630
c. $3,675
d. $3,884 - Answer c
Which of the following is an example of a SMART goal?
, a) Retiring at age 65 with enough money to live comfortably
b) Purchasing a new 65-foot sailboat in 3 years
c) Starting a business in a few years that will generate $300,000 in net sales
d) Saving $75,000 for the down payment on a home that will be purchased in 4 years -
Answer d
Burt makes $3,300 per month.
He pays $800 in taxes, $700 in rent, $450 on food, $225 for a car payment, $150 in gas
and maintenance, and $700 in entertainment every month.
What is Burt's surplus or deficit?
a. $0
b. $25
c. $275
d. -$25 - Answer c (surplus)
Assume Maria earns $8.50 per hour. If she receives "time and a half" for any hours
worked more than 40 per week, how much will Maria earn if she works 50 hours this
week?
a. $425.00
b. $450.00
c. $467.50
d. $637.50 - Answer c
Yolinda and Wes decide to go into business together. What form of partnership
arrangement can they use to limit their individual and joint liability?
a. Limited liability partnership
b. Limited liability company
c. Limited sole proprietorship
d. Either a limited liability partnership or a limited liability
company - Answer b
Someone who takes risks with his or her money by buying assets or shares in a
company in hopes of receiving unearned income in the form of dividends is called a(n):
