Test Bank for Focus on Personal Finance, 7th Edition – Kapoor, Dlabay, Hughes & Hart

FULL TEST BANK FOR
Focus On Personal Finance 7th Edition Jack Kapoor, Les Dlabay, Robert J.
Hughes, Melissa Hart




Student name:__________
1) If inflation is expected to be 9.50 percent, how long will it take for prices to double?
1) ______


A) 5.58 years
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




Version 1 1

,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
B) $3,900
C) $10,380
D) $10,038
E) $3,800



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) ______




Version 1 2

, 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
E) $380.45



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




Version 1 3

, 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.




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