Crpc Exam Revision Questions And Answers

CRPC EXAM REVISION QUESTIONS AND ANSWERS Mary Goodwin's financial situation is as follows: Cash/cash equivalents $15,000 Short-term debts $8,000 Long-term debts $133,000 Tax expense $7,000 Auto note payments $4,000 Invested assets $60,000 Use assets $188,000 What is her net worth? A)$111,000 B)$137,000 C)$122,000 D)$263,000 - CORRECT ANSWER -C At the end of last year, Bill Greer has the following financial information: Salaries$70,000Auto payments$5,000Insurance payments$3,800Food$8,000Credit card balance$10,000Dividends$1,100Utilities$3,500Mortgage payments$14,000Taxes$13,000Clothing$9,000Interest income$2,100Checking account$4,000Vacations$8,400Donations$5,800 What is the cash flow surplus or (deficit) for Bill? A) $2,700 B) $6,500 C) $10,700 D) ($500) - CORRECT ANSWER -Aterm-0 Which of the following are correct statements about income replacement percentages? I.Income replacement percentages are typically much higher for those with higher preretirement incomes. II.Income replacement percentages vary between low-income and high-income retirees. III.Income replacement ratios should not be used as the only basis for planning. IV.Income replacement ratios are useful for younger clients as a guide to their long-range planning and investing. A) I and IV B) I and II C) II and III D) II, III, and IV - CORRECT ANSWER -D If Tom and Jenny want to save a fixed amount annually to accumulate $2 million by their retirement date in 25 years (rather than an amount that grows with inflation each year), what level annual end-ofyear savings amount will they need to deposit each year, assuming their savings earn 7% annually? A) $55,692