CFP Calculator Practice: Questions with Answers
Name has $10k to invest. She wants to accumulate $18,560 earning 7% annually. How many
years will it take to reach her goal? pg12 – Answers A little more than 9 years.
Name has $10k to invest. She wants to accumulate $18,560 earning 7% compounded semi-
annually. How many years will it take to reach her goal? pg14 – Answers Just under 9 years.
Name have $25,000 to invest in a mutual fund. They project the rate of return to be 6.5%
compounded semi-annually. How many years, rounded to the nearest half year, will it take to
accumulate $43,500? pg16 - Answers8.5 years (8.6590)
Name has $10,000 to invest and needs to accumulate $15,025 in 5 years. What annual interest
rate must he earn to meet his goal? pg16 - Answers8.4833
Name has $10k to invest and needs to accumulate $15,025 in 5 years. What annual interest
rate must he earn to meet his goal if the earnings compound quarterly? pg17 - Answers8.2261
Annuity Due - AnswersPayment(s) are made at the beginning of the period(s).
Ordinary Annuity - AnswersPayment(s) are made at the end of the period(s).
Name needs $50k in 10 years. He can currently invest $20k. What rate of return is required for
him to achieve his goal if the interest is compounded semiannually? pg18 - Answers9.3760
In 6 years, Name needs $50,000. Similar investments earn a 7.5% annual rate of return. What
is the current value of this invested sum? pg18 - Answers-32,398.0759
In 6 years, Name needs $50,000. Similar investments earn a 7.5% annual rate of return
compounded monthly. What is the current value of this invested sum? pg19 - Answers-
31,926.0862
, CFP Calculator Practice: Questions with Answers
Name will have their 25th anniversary five years from now and would like to take a cruise. They
figure it will cost $25k and feel they can earn 6.2% in a fund that compounds interest quarterly.
What sum must they set aside now for their vacation? pg20 - Answers-18,379.8285
You want to purchase a painting costing $20k. The art dealer will finance this purchase at 8%
compounded annually for six years. You are required to make one payment at the end of each
year. What is the amount of that monthly payment? pg21 - Answers-4,326.3077
You want to purchase a painting costing $20k. The art dealer will finance this purchase at 8%
compounded quarterly for six years. You are required to make one payment at the end of each
quarter. What is the amount of that payment? pg22 - Answers-1,057.4219
Name is looking to purchase their first home. They fell in love with a house costing $250k. They
are looking at a 30 year fixed, fully amortized mortgage. They've been pre-approved for an
annualized rate of 5.15%, and are interested in knowing whether they can afford the payment.
What is their payment? pg23 - Answers-1,365.0656
Name gives you $15,000 to invest in a mutual fund with a 10 year time horizon. The expected
return compounded annually is 8%. What will the mutual fund be worth in 10 years? pg23 -
Answers32,383.8750
Name gives you $15,000 to invest in a mutual fund with a 10 year time horizon. The expected
return compounded semi-annually is 8%. What will the mutual fund be worth in 10 years? pg24
- Answers32,866.8472
Name has just inherited $75k. She is interested in starting her own business seven years from
now. She feels she can earn 7.25% on her investments, compounded monthly. How much
money will she have available to put toward the business venture seven years from now? -
Answers124,394.9006
Name has $10k to invest. She wants to accumulate $18,560 earning 7% annually. How many
years will it take to reach her goal? pg12 – Answers A little more than 9 years.
Name has $10k to invest. She wants to accumulate $18,560 earning 7% compounded semi-
annually. How many years will it take to reach her goal? pg14 – Answers Just under 9 years.
Name have $25,000 to invest in a mutual fund. They project the rate of return to be 6.5%
compounded semi-annually. How many years, rounded to the nearest half year, will it take to
accumulate $43,500? pg16 - Answers8.5 years (8.6590)
Name has $10,000 to invest and needs to accumulate $15,025 in 5 years. What annual interest
rate must he earn to meet his goal? pg16 - Answers8.4833
Name has $10k to invest and needs to accumulate $15,025 in 5 years. What annual interest
rate must he earn to meet his goal if the earnings compound quarterly? pg17 - Answers8.2261
Annuity Due - AnswersPayment(s) are made at the beginning of the period(s).
Ordinary Annuity - AnswersPayment(s) are made at the end of the period(s).
Name needs $50k in 10 years. He can currently invest $20k. What rate of return is required for
him to achieve his goal if the interest is compounded semiannually? pg18 - Answers9.3760
In 6 years, Name needs $50,000. Similar investments earn a 7.5% annual rate of return. What
is the current value of this invested sum? pg18 - Answers-32,398.0759
In 6 years, Name needs $50,000. Similar investments earn a 7.5% annual rate of return
compounded monthly. What is the current value of this invested sum? pg19 - Answers-
31,926.0862
, CFP Calculator Practice: Questions with Answers
Name will have their 25th anniversary five years from now and would like to take a cruise. They
figure it will cost $25k and feel they can earn 6.2% in a fund that compounds interest quarterly.
What sum must they set aside now for their vacation? pg20 - Answers-18,379.8285
You want to purchase a painting costing $20k. The art dealer will finance this purchase at 8%
compounded annually for six years. You are required to make one payment at the end of each
year. What is the amount of that monthly payment? pg21 - Answers-4,326.3077
You want to purchase a painting costing $20k. The art dealer will finance this purchase at 8%
compounded quarterly for six years. You are required to make one payment at the end of each
quarter. What is the amount of that payment? pg22 - Answers-1,057.4219
Name is looking to purchase their first home. They fell in love with a house costing $250k. They
are looking at a 30 year fixed, fully amortized mortgage. They've been pre-approved for an
annualized rate of 5.15%, and are interested in knowing whether they can afford the payment.
What is their payment? pg23 - Answers-1,365.0656
Name gives you $15,000 to invest in a mutual fund with a 10 year time horizon. The expected
return compounded annually is 8%. What will the mutual fund be worth in 10 years? pg23 -
Answers32,383.8750
Name gives you $15,000 to invest in a mutual fund with a 10 year time horizon. The expected
return compounded semi-annually is 8%. What will the mutual fund be worth in 10 years? pg24
- Answers32,866.8472
Name has just inherited $75k. She is interested in starting her own business seven years from
now. She feels she can earn 7.25% on her investments, compounded monthly. How much
money will she have available to put toward the business venture seven years from now? -
Answers124,394.9006
