Marco plans to save $100,000 in today's dollars by the end of 15 years to supplement
his retirement plan from work. He wants to fund this goal using a serial payment, that
is, an annual payment that increases each year by the estimated inflation.
If Marco estimates an annual after-tax return of 6% and inflation of 5%, what payment
will he need to make at the end of the first year? (Round your answer to the nearest
dollar.)
Give this one a try later!
, The answer is $6,545.
END Mode
1, DOWNSHIFT, P/YR
C ALL
100,000, FV
15, DOWNSHIFT, N (15 periods on display)
.9524, I/YR This is 1.06 ÷ 1.05 - 1 x 100.
According to the rules established by CFP Board, which of the following uses of the
certification marks are CORRECT?
Frank Smith, C.F.P.
Frank Smith, CFP®
Frank Smith & Co., PA, CFPs
Frank Smith, CERTIFIED FINANCIAL PLANNER™
A)
II only
B)
I, II, and IV
C)
I, II, and III
D)
II and IV
Give this one a try later!
The answer is II and IV. The CFP® marks should never contain periods. In
addition, the marks should not be used as part of or incorporated in the
name of a firm.
Joe is considering purchasing a machine that will cost $10,000 for use in his business.
He anticipates selling this machine at the end of five years for $3,500. The machine is
projected to produce the following cash flows:
End of year 1: $300
End of year 2: $600
,End of year 3: $1,200
End of year 4: $2,400
End of year 5: $4,800
Calculate the internal rate of return (IRR) for Joe's anticipated purchase.
Give this one a try later!
The answer is 5.82%.
END Mode
1, DOWNSHIFT, P/YR
C ALL
10,000, +/−, CFj
300, CFj
600, CFj
1,200, CFj
2,400, CFj
8,300, CFj, DOWNSHIFT, IRR/YR = 5.8229, or 5.82%
Which of the following best describes deflation?
Give this one a try later!
Prices are falling in absolute terms, bond prices rise, and purchasing power
increases
Which of these statements concerning Pell grants are CORRECT?
Pell Grants are the primary type of grants dispersed directly to students.
Financial need and availability of federal funds are the criteria for receipt.
Receipt of other grants is sometimes contingent upon applying for or receiving a Pell
grant.
The Pell grant is available to both undergraduates and graduate students.
Give this one a try later!
, Pell Grants are the primary type of grants dispersed directly to students.
Financial need and availability of federal funds are the criteria for receipt.
Receipt of other grants is sometimes contingent upon applying for or
receiving a Pell grant.
The answer is I, II, and III. Only statement IV is incorrect. The Pell Grant is
only available to undergraduates.
Which of the following statements regarding the classical economics approach to
financial counseling is CORRECT?
Clients choose among alternatives based on objectively defined cost-benefit and
risk-return tradeoffs.
This approach is based on the use of psychoanalytic theory such as Freudian or
Gestalt theory.
This approach believes that increasing financial resources or reducing financial
expenditures results in improved financial outcomes.
This approach features the use of a SWOT analysis.
A)
I and II
B)
II, III, and IV
C)
III and IV
D)
I and III
Give this one a try later!
his retirement plan from work. He wants to fund this goal using a serial payment, that
is, an annual payment that increases each year by the estimated inflation.
If Marco estimates an annual after-tax return of 6% and inflation of 5%, what payment
will he need to make at the end of the first year? (Round your answer to the nearest
dollar.)
Give this one a try later!
, The answer is $6,545.
END Mode
1, DOWNSHIFT, P/YR
C ALL
100,000, FV
15, DOWNSHIFT, N (15 periods on display)
.9524, I/YR This is 1.06 ÷ 1.05 - 1 x 100.
According to the rules established by CFP Board, which of the following uses of the
certification marks are CORRECT?
Frank Smith, C.F.P.
Frank Smith, CFP®
Frank Smith & Co., PA, CFPs
Frank Smith, CERTIFIED FINANCIAL PLANNER™
A)
II only
B)
I, II, and IV
C)
I, II, and III
D)
II and IV
Give this one a try later!
The answer is II and IV. The CFP® marks should never contain periods. In
addition, the marks should not be used as part of or incorporated in the
name of a firm.
Joe is considering purchasing a machine that will cost $10,000 for use in his business.
He anticipates selling this machine at the end of five years for $3,500. The machine is
projected to produce the following cash flows:
End of year 1: $300
End of year 2: $600
,End of year 3: $1,200
End of year 4: $2,400
End of year 5: $4,800
Calculate the internal rate of return (IRR) for Joe's anticipated purchase.
Give this one a try later!
The answer is 5.82%.
END Mode
1, DOWNSHIFT, P/YR
C ALL
10,000, +/−, CFj
300, CFj
600, CFj
1,200, CFj
2,400, CFj
8,300, CFj, DOWNSHIFT, IRR/YR = 5.8229, or 5.82%
Which of the following best describes deflation?
Give this one a try later!
Prices are falling in absolute terms, bond prices rise, and purchasing power
increases
Which of these statements concerning Pell grants are CORRECT?
Pell Grants are the primary type of grants dispersed directly to students.
Financial need and availability of federal funds are the criteria for receipt.
Receipt of other grants is sometimes contingent upon applying for or receiving a Pell
grant.
The Pell grant is available to both undergraduates and graduate students.
Give this one a try later!
, Pell Grants are the primary type of grants dispersed directly to students.
Financial need and availability of federal funds are the criteria for receipt.
Receipt of other grants is sometimes contingent upon applying for or
receiving a Pell grant.
The answer is I, II, and III. Only statement IV is incorrect. The Pell Grant is
only available to undergraduates.
Which of the following statements regarding the classical economics approach to
financial counseling is CORRECT?
Clients choose among alternatives based on objectively defined cost-benefit and
risk-return tradeoffs.
This approach is based on the use of psychoanalytic theory such as Freudian or
Gestalt theory.
This approach believes that increasing financial resources or reducing financial
expenditures results in improved financial outcomes.
This approach features the use of a SWOT analysis.
A)
I and II
B)
II, III, and IV
C)
III and IV
D)
I and III
Give this one a try later!
