1|P a g e
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CRPC PRACTICE EXAM 2025 || LATELY UPDATED
QUESTIONS AND 100% CORRECT ANSWERS WITH A
GUARANTEED A+|| LATEST AND COMPLETE
UPDATE 2025 WITH VERIFIED SOLUTIONS||
ASSURED PASS!!
Mary Goodwin's financial situation is as follows:
Cash/cash equivalents $15,000
Short-term debts $8,000
Long-term debts $133,000
Tax expense $7,000
Auto note payments $4,000
Invested assets $60,000
Use assets $188,000
What is her net worth?
A)$111,000
B)$137,000
C)$122,000
D)$263,000 - ANSWER: C
At the end of last year, Bill Greer has the following financial information:
Salaries$70,000Auto payments$5,000Insurance payments$3,800Food$8,000Credit
card balance$10,000Dividends$1,100Utilities$3,500Mortgage
payments$14,000Taxes$13,000Clothing$9,000Interest income$2,100Checking
account$4,000Vacations$8,400Donations$5,800
What is the cash flow surplus or (deficit) for Bill?
A)
$2,700
,2|Page
B)
$6,500
C)
$10,700
D)
($500) - ANSWER: A
Which of the following are correct statements about income replacement
percentages?
I.Income replacement percentages are typically much higher for those with higher
preretirement incomes.
II.Income replacement percentages vary between low-income and high-income
retirees.
III.Income replacement ratios should not be used as the only basis for planning.
IV.Income replacement ratios are useful for younger clients as a guide to their
long-range planning and investing.
A)
I and IV
B)
I and II
C)
II and III
D)
II, III, and IV - ANSWER: D
If Tom and Jenny want to save a fixed amount annually to accumulate $2 million
by their retirement date in 25 years (rather than an amount that grows with
,3|Page
inflation each year), what level annual end-of-year savings amount will they need
to deposit each year, assuming their savings earn 7% annually?
A)
$55,692
B)
$31,621
C)
$29,552
D)
$54,130 - ANSWER: B
Bill and Lisa Hahn have determined that they will need a monthly income of
$6,000 during retirement. They expect to receive Social Security retirement
benefits amounting to $3,500 per month at the beginning of each month. Over the
12 remaining years of their preretirement period, they expect to generate an
average annual after-tax investment return of 8%; during their 25-year retirement
period, they want to assume a 6% annual after-tax investment return compounded
monthly. They want to start their monthly retirement withdrawals on the first day
they retire.
What is the lump sum needed at the beginning of retirement to fund this income
stream?
A)
$931,241
B)
$388,017
C)
$389,957
D)
, 4|Page
$598,504 - ANSWER: C
Chris and Eve Bronson have analyzed their current living expenses and estimated
their retirement income need, net of expected Social Security benefits, to be
$90,000 in today's dollars. They are confident that they can earn a 7% after-tax
return on their investments, and they expect inflation to average 4% over the long
term.
Determine the lump sum amount the Bronsons will need at the beginning of
retirement to fund their retirement income needs, using the worksheet below.
(1) Adjust income deficit for inflation over the preretirement period:$
90,000present value of retirement income deficit25number of periods until
retirement4%% inflation rateFuture value of income deficit in first retirement
year$239,925(2) Determine retirement fund needed to meet income
deficit:$239,925payment (future value of income deficit in first retirement
year)30number of periods in retirement
The lump sum needed at the beginning of the Br - ANSWER: D
Assume a client and investment professional have worked together for several
years. Recently, the client's personal and financial circumstances have changed.
According to the course materials, what is the next asset management step that the
investment professional should take?
A)
make and implement recommendations
B)
gather data
C)
monitor performance
D)
fj fj fj fj fj
CRPC PRACTICE EXAM 2025 || LATELY UPDATED
QUESTIONS AND 100% CORRECT ANSWERS WITH A
GUARANTEED A+|| LATEST AND COMPLETE
UPDATE 2025 WITH VERIFIED SOLUTIONS||
ASSURED PASS!!
Mary Goodwin's financial situation is as follows:
Cash/cash equivalents $15,000
Short-term debts $8,000
Long-term debts $133,000
Tax expense $7,000
Auto note payments $4,000
Invested assets $60,000
Use assets $188,000
What is her net worth?
A)$111,000
B)$137,000
C)$122,000
D)$263,000 - ANSWER: C
At the end of last year, Bill Greer has the following financial information:
Salaries$70,000Auto payments$5,000Insurance payments$3,800Food$8,000Credit
card balance$10,000Dividends$1,100Utilities$3,500Mortgage
payments$14,000Taxes$13,000Clothing$9,000Interest income$2,100Checking
account$4,000Vacations$8,400Donations$5,800
What is the cash flow surplus or (deficit) for Bill?
A)
$2,700
,2|Page
B)
$6,500
C)
$10,700
D)
($500) - ANSWER: A
Which of the following are correct statements about income replacement
percentages?
I.Income replacement percentages are typically much higher for those with higher
preretirement incomes.
II.Income replacement percentages vary between low-income and high-income
retirees.
III.Income replacement ratios should not be used as the only basis for planning.
IV.Income replacement ratios are useful for younger clients as a guide to their
long-range planning and investing.
A)
I and IV
B)
I and II
C)
II and III
D)
II, III, and IV - ANSWER: D
If Tom and Jenny want to save a fixed amount annually to accumulate $2 million
by their retirement date in 25 years (rather than an amount that grows with
,3|Page
inflation each year), what level annual end-of-year savings amount will they need
to deposit each year, assuming their savings earn 7% annually?
A)
$55,692
B)
$31,621
C)
$29,552
D)
$54,130 - ANSWER: B
Bill and Lisa Hahn have determined that they will need a monthly income of
$6,000 during retirement. They expect to receive Social Security retirement
benefits amounting to $3,500 per month at the beginning of each month. Over the
12 remaining years of their preretirement period, they expect to generate an
average annual after-tax investment return of 8%; during their 25-year retirement
period, they want to assume a 6% annual after-tax investment return compounded
monthly. They want to start their monthly retirement withdrawals on the first day
they retire.
What is the lump sum needed at the beginning of retirement to fund this income
stream?
A)
$931,241
B)
$388,017
C)
$389,957
D)
, 4|Page
$598,504 - ANSWER: C
Chris and Eve Bronson have analyzed their current living expenses and estimated
their retirement income need, net of expected Social Security benefits, to be
$90,000 in today's dollars. They are confident that they can earn a 7% after-tax
return on their investments, and they expect inflation to average 4% over the long
term.
Determine the lump sum amount the Bronsons will need at the beginning of
retirement to fund their retirement income needs, using the worksheet below.
(1) Adjust income deficit for inflation over the preretirement period:$
90,000present value of retirement income deficit25number of periods until
retirement4%% inflation rateFuture value of income deficit in first retirement
year$239,925(2) Determine retirement fund needed to meet income
deficit:$239,925payment (future value of income deficit in first retirement
year)30number of periods in retirement
The lump sum needed at the beginning of the Br - ANSWER: D
Assume a client and investment professional have worked together for several
years. Recently, the client's personal and financial circumstances have changed.
According to the course materials, what is the next asset management step that the
investment professional should take?
A)
make and implement recommendations
B)
gather data
C)
monitor performance
D)
