End of Semester Test Financial Math A
a tax-deferred retirement savings plan available to employees of some nonprofit
organizations and educational institutions
a tax-advantaged college savings plan
an employer-offered retirement account that accepts contributions from
employees and employers
a tax-advantaged savings account available through employers to pay for
qualified medical expenses
a retirement investment account managed by individuals; deposits are taxable,
but funds are tax exempt when withdrawn at retirement - ANS - 403(b)
529 plan
401(k)
health FSA
Roth IRA
\After college Gerald wants to take a graduation trip to China. He wants to save
$4,000 for his trip in four years. About how much does Gerald have to save each
month if his savings earns 7% interest compounded monthly? - ANS - B. $72
\An investor purchased a mutual fund through his broker. The broker charged
him a fee of 3.75% of the amount of the fund. Which type of fee has the broker
charged? - ANS - B. front-end load
\As a sales executive at a large corporation, Sonya earns ___________for every
big sale she makes. Jessica, who works full time in the company's finance
department as an accountant, earns ____________. - ANS - a commission
a fixed salary
\Cindy wants to sell 300 shares of a company's stock at the market price of $25
per share. She looks up online brokers and the fees they charge. Arrange the
brokers' fees in order from least to greatest. - ANS - broker E
broker C
broker D
a tax-deferred retirement savings plan available to employees of some nonprofit
organizations and educational institutions
a tax-advantaged college savings plan
an employer-offered retirement account that accepts contributions from
employees and employers
a tax-advantaged savings account available through employers to pay for
qualified medical expenses
a retirement investment account managed by individuals; deposits are taxable,
but funds are tax exempt when withdrawn at retirement - ANS - 403(b)
529 plan
401(k)
health FSA
Roth IRA
\After college Gerald wants to take a graduation trip to China. He wants to save
$4,000 for his trip in four years. About how much does Gerald have to save each
month if his savings earns 7% interest compounded monthly? - ANS - B. $72
\An investor purchased a mutual fund through his broker. The broker charged
him a fee of 3.75% of the amount of the fund. Which type of fee has the broker
charged? - ANS - B. front-end load
\As a sales executive at a large corporation, Sonya earns ___________for every
big sale she makes. Jessica, who works full time in the company's finance
department as an accountant, earns ____________. - ANS - a commission
a fixed salary
\Cindy wants to sell 300 shares of a company's stock at the market price of $25
per share. She looks up online brokers and the fees they charge. Arrange the
brokers' fees in order from least to greatest. - ANS - broker E
broker C
broker D
