HS 326 Sample Exam Review QUESTIONS AND
ALL CORRECT ANSWERS 100% SOLVED
AND GUARANTEED SUCCESS!!
Carla would like to determine her financial needs during retirement. All of the
following are costs she might eliminate in her retirement needs calculation
EXCEPT
A)
the $175 per month of parking expenses for parking at her place of
employment.
B)
the $1,500 mortgage payment that is scheduled to end 12 years into
retirement.
C)
the Medicare taxes she pays each year.
D)
the $2,000 per month she deposits into savings., - answer--B)
the $1,500 mortgage payment that is scheduled to end 12 years into
retirement.
Carolyn is planning for her retirement. She is currently 37 years old and plans
to retire at age 62 and hopes to live until age 97. She currently earns $100,000
per year and anticipates needing 80% of her income during retirement. She
anticipates that Social Security will provide her with $15,000 per year starting
,at age 62, leaving her with required savings to provide $65,000 annually during
retirement ($100,000 × 0.80 − $15,000). She believes she can earn 11% on her
investments, and that inflation will be 2% per year. How much must Carolyn
save at the end of each year if she wants to make her last savings payment at
age 62 to meet her retirement goal, assuming she wants to maintain the
original purchasing power of her capital balance?
A)
$4,759
B)
$10,899
C)
$11,464
D)
$11,566 - answer--B)
$10,899
Marcus has been employed by GCD Enterprises for 15 years, and currently
earns $60,000 per year. Marcus saves $15,000 per year. He plans to pay off his
home at retirement and live debt free. He currently spends $12,000 per year
on his mortgage. What do you expect Marcus' wage replacement ratio to be,
based on the above information?
A)
28.41%
B)
33.02%
C)
,47.35%
D)
55.00% - answer--C)
47.35%
Which of the following factors may affect a retirement plan?
I. Career earningsII. Retirement life expectancyIII. MortalityIV. Savings rate
A)
I and II
B)
II and III
C)
I, II, and IV
D)
All of the above - answer--D)
All of the above
Christian wants to retire in 15 years when he turns 65. Christian wants to have
enough money to replace 75% of his current income less what he expects to
receive from Social Security at the beginning of each year. He expects to
receive $18,000 per year from Social Security in today's dollars. Christian is
aggressive and wants to assume an 8% annual investment rate of return and
that inflation will be 3% per year. Based on his family history, Christian expects
that he will reach the age of 95. If Christian currently earns $80,000 per year
and he expects his raises to equal the inflation rate, how much does he need at
retirement to fulfill his retirement goals?
, A)
$1,022,807
B)
$1,072,454
C)
$1,559,131
D)
$1,583,152 - answer--B)
$1,072,454
Contributing $1,500 to his retirement fund at the end of each year beginning at
age 18 through age 50, with an average annual return of 12%, how much does
Juan have in his retirement account at this time to use toward a possible early
retirement?
A)
$346,766.42
B)
$399,987.65
C)
$457,271.58
D)
$541,890.55 - answer--C)
$457,271.58
ALL CORRECT ANSWERS 100% SOLVED
AND GUARANTEED SUCCESS!!
Carla would like to determine her financial needs during retirement. All of the
following are costs she might eliminate in her retirement needs calculation
EXCEPT
A)
the $175 per month of parking expenses for parking at her place of
employment.
B)
the $1,500 mortgage payment that is scheduled to end 12 years into
retirement.
C)
the Medicare taxes she pays each year.
D)
the $2,000 per month she deposits into savings., - answer--B)
the $1,500 mortgage payment that is scheduled to end 12 years into
retirement.
Carolyn is planning for her retirement. She is currently 37 years old and plans
to retire at age 62 and hopes to live until age 97. She currently earns $100,000
per year and anticipates needing 80% of her income during retirement. She
anticipates that Social Security will provide her with $15,000 per year starting
,at age 62, leaving her with required savings to provide $65,000 annually during
retirement ($100,000 × 0.80 − $15,000). She believes she can earn 11% on her
investments, and that inflation will be 2% per year. How much must Carolyn
save at the end of each year if she wants to make her last savings payment at
age 62 to meet her retirement goal, assuming she wants to maintain the
original purchasing power of her capital balance?
A)
$4,759
B)
$10,899
C)
$11,464
D)
$11,566 - answer--B)
$10,899
Marcus has been employed by GCD Enterprises for 15 years, and currently
earns $60,000 per year. Marcus saves $15,000 per year. He plans to pay off his
home at retirement and live debt free. He currently spends $12,000 per year
on his mortgage. What do you expect Marcus' wage replacement ratio to be,
based on the above information?
A)
28.41%
B)
33.02%
C)
,47.35%
D)
55.00% - answer--C)
47.35%
Which of the following factors may affect a retirement plan?
I. Career earningsII. Retirement life expectancyIII. MortalityIV. Savings rate
A)
I and II
B)
II and III
C)
I, II, and IV
D)
All of the above - answer--D)
All of the above
Christian wants to retire in 15 years when he turns 65. Christian wants to have
enough money to replace 75% of his current income less what he expects to
receive from Social Security at the beginning of each year. He expects to
receive $18,000 per year from Social Security in today's dollars. Christian is
aggressive and wants to assume an 8% annual investment rate of return and
that inflation will be 3% per year. Based on his family history, Christian expects
that he will reach the age of 95. If Christian currently earns $80,000 per year
and he expects his raises to equal the inflation rate, how much does he need at
retirement to fulfill his retirement goals?
, A)
$1,022,807
B)
$1,072,454
C)
$1,559,131
D)
$1,583,152 - answer--B)
$1,072,454
Contributing $1,500 to his retirement fund at the end of each year beginning at
age 18 through age 50, with an average annual return of 12%, how much does
Juan have in his retirement account at this time to use toward a possible early
retirement?
A)
$346,766.42
B)
$399,987.65
C)
$457,271.58
D)
$541,890.55 - answer--C)
$457,271.58
