Focus on Personal Finance – 7th Edition by Jack R. Kapoor & Les R. Dlabay | Complete Test Bank (Chapters 1–14 with Answers at End of Each Chapter)

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Focus on Personal Finance 7th Edition by
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Jack R. Kapoor, Les R. Dlabay test bank
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All Chapters 1-14 Answers are at the End Chapter
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Chapter 1: Personal Financial Planning in Action
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1) If inflation is expected to be 9.50 percent, how long will it take for prices to double?
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1)

A) 5.58 years
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B) 6.58 years

C) 17.58 years

D) 11.58 years

E) 7.58 years

Question Details Bloom's : Apply Difficulty : 3 Hard

Learning Objective : 01-01 Identify social and economic influences on financial literacy and personal
Topic : Financial Planning

Topic : Finance and Economics Accessibility : Keyboard Navigation Accessibility : Screen Reader
Compatible Gradable : automatic



2) If a $12,000 investment earns interest of $1,560 in 1 year, what is its rate of return?

2)

A) 100 percent

B) 79 percent

C) 26 percent

D) 58 percent

E) 13 percent

Question Details Bloom's : Apply Difficulty : 3 Hard

Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic

Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money



3) If a $10,000 investment earns a 3.8 percent annual return, what should its value be after 1 year?

3)

A) $10,000

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B) $3,900
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C) $10,380

D) $10,038
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E) $3,800
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Question Details Bloom's : Apply Difficulty : 3 Hard

Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic

Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money



4) If a $10,000 investment earns a 7 percent annual return, what should its value be after 4 years?
Use Exhibit 1-A.

4)

A) $13,110

B) $12,800

C) $10,700

D) $10,035

E) $14,700

Question Details Bloom's : Apply Difficulty : 3 Hard

Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic

Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money




5) If Melinda Miller estimates that her $350 weekly grocery bill will increase at an annual inflation
rate of 3 percent, what should her weekly grocery bill be in 2 years? Use Exhibit 1-A.

5)

A) $70.00

B) $105.00

C) $371.35

D) $473.35

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E) $380.45
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Question Details Bloom's : Apply Difficulty : 3 Hard

Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
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Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
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dec Topic : Time Value of Money



6) If you deposit $500 into a certificate of deposit earning 3.8 percent, what would be your earnings
after 12 months?

6)

A) $538.00

B) $500.00

C) $16.50

D) $21.50

E) $19.00

Question Details Bloom's : Apply Difficulty : 3 Hard

Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic

Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money



7) Randy Hill wants to retire in 25 years with $1,500,000. If he can earn 10 percent per year on his
investments, how much does he need to deposit each year to reach his goal? Use Exhibit 1-B. (Round
your answer to the nearest dollar.)

7)

A) $15,252

B) $30,000

C) $60,000

D) $14,752

E) None of these choices are correct.

Question Details Bloom's : Apply Difficulty : 3 Hard

Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic

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