TEST BANK FOR z z
Focus on Personal Finance, 7th Edition
z z z z z
Chapter 1-14 Answers are at the end of Each chapter
z z z z z z z z z
Chapter 1 z
Student name: z
1) If inflation is expected to be 9.50 percent, how long will it take for prices to double?
z z z z z z z z z z z z z z z z
A) 5.58 years z
B) 6.58 years z
C) 17.58 years z
D) 11.58 years z
E) 7.58 years z
Question Details z
Bloom's : Apply
z z z
Difficulty : 3 Hard
z z z z
Learning Objective : 01-01 Identify social and economic influences on financial literacy and personal
z z z z z z z z z z z z z
Topic : Financial Planning
z z z z
Topic : Finance and Economics
z z z z
Accessibility : Keyboard Navigation
z z z z
Accessibility : Screen Reader Compatible
z z z z z
Gradable : automatic
z z z
2) If a $12,000 investment earns interest of $1,560 in 1 year, what is its rate of return?
z z z z z z z z z z z z z z z z
2) z
A) 100 percent z
B) 79 percent
z
C) 26 percent
z
Version 1 z 1
, D) 58 percent
z
E) 13 percent
z
Question Details z
Bloom's : Apply
z z z
Difficulty : 3 Hard
z z z z
Accessibility : Keyboard Navigation
z z z
Accessibility : Screen Reader Compatible
z z z z z
Gradable : automatic
z z z
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
z z z z z z z z z z z z z z
Topic : Time Value of Money
z z z z z z
3) If a $10,000 investment earns a 3.8 percent annual return, what should its value be after 1
z z z z z z z z z z z z z z z z
year?
z
3) z
A) $10,000
B) $3,900
C) $10,380
D) $10,038
E) $3,800
Question Details z
Bloom's : Apply
z z z
Difficulty : 3 Hard
z z z z
Accessibility : Keyboard Navigation
z z z
Accessibility : Screen Reader Compatible
z z z z z
Gradable : automatic
z z z
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
z z z z z z z z z z z z z z
Topic : Time Value of Money
z z z z z z
4) If a $10,000 investment earns a 7 percent annual return, what should its value be after 4
z z z z z z z z z z z z z z z z
years? Use Exhibit 1-A.
z z z z
4) z
Version 1 z 2
, A) $13,110
B) $12,800
C) $10,700
D) $10,035
E) $14,700
Question Detailsz
Bloom's : Apply
z z z
Difficulty : 3 Hard
z z z z
Accessibility : Keyboard Navigation
z z z
Accessibility : Screen Reader Compatible
z z z z z
Gradable : automatic
z z z
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
z z z z z z z z z z z z z z
Topic : Time Value of Money
z z z z z z
5) If Melinda Miller estimates that her $350 weekly grocery bill will increase at an annual
z z z z z z z z z z z z z z
inflation rate of 3 percent, what should her weekly grocery bill be in 2 years? Use Exhibit 1-A.
z z z z z z z z z z z z z z z z z z
5) z
A) $70.00
B) $105.00
C) $371.35
D) $473.35
E) $380.45
Question Detailsz
Bloom's : Apply
z z z
Difficulty : 3 Hard
z z z z
Accessibility : Keyboard Navigation
z z z
Accessibility : Screen Reader Compatible
z z z z z
Gradable : automatic
z z z
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
z z z z z z z z z z z z z z
Topic : Time Value of Money
z z z z z z
Version 1 z 3
, 6) If you deposit $500 into a certificate of deposit earning 3.8 percent, what would be your
z z z z z z z z z z z z z z z
earnings after 12 months?
z z z z
6) z
A) $538.00
B) $500.00
C) $16.50
D) $21.50
E) $19.00
Question Details z
Bloom's : Apply
z z z
Difficulty : 3 Hard
z z z z
Accessibility : Keyboard Navigation
z z z
Accessibility : Screen Reader Compatible
z z z z z
Gradable : automatic
z z z
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
z z z z z z z z z z z z z z
Topic : Time Value of Money
z z z z z z
7) Randy Hill wants to retire in 25 years with $1,500,000. If he can earn 10 percent per year
z z z z z z z z z z z z z z z z z
on his investments, how much does he need to deposit each year to reach his goal? Use Exhibit
z z z z z z z z z z z z z z z z z z
1-B. (Round your answer to the nearest dollar.)
z z z z z z z z
7) z
A) $15,252
B) $30,000
C) $60,000
D) $14,752
E) None of these choices are correct.
z z z z z
Version 1 z 4
Focus on Personal Finance, 7th Edition
z z z z z
Chapter 1-14 Answers are at the end of Each chapter
z z z z z z z z z
Chapter 1 z
Student name: z
1) If inflation is expected to be 9.50 percent, how long will it take for prices to double?
z z z z z z z z z z z z z z z z
A) 5.58 years z
B) 6.58 years z
C) 17.58 years z
D) 11.58 years z
E) 7.58 years z
Question Details z
Bloom's : Apply
z z z
Difficulty : 3 Hard
z z z z
Learning Objective : 01-01 Identify social and economic influences on financial literacy and personal
z z z z z z z z z z z z z
Topic : Financial Planning
z z z z
Topic : Finance and Economics
z z z z
Accessibility : Keyboard Navigation
z z z z
Accessibility : Screen Reader Compatible
z z z z z
Gradable : automatic
z z z
2) If a $12,000 investment earns interest of $1,560 in 1 year, what is its rate of return?
z z z z z z z z z z z z z z z z
2) z
A) 100 percent z
B) 79 percent
z
C) 26 percent
z
Version 1 z 1
, D) 58 percent
z
E) 13 percent
z
Question Details z
Bloom's : Apply
z z z
Difficulty : 3 Hard
z z z z
Accessibility : Keyboard Navigation
z z z
Accessibility : Screen Reader Compatible
z z z z z
Gradable : automatic
z z z
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
z z z z z z z z z z z z z z
Topic : Time Value of Money
z z z z z z
3) If a $10,000 investment earns a 3.8 percent annual return, what should its value be after 1
z z z z z z z z z z z z z z z z
year?
z
3) z
A) $10,000
B) $3,900
C) $10,380
D) $10,038
E) $3,800
Question Details z
Bloom's : Apply
z z z
Difficulty : 3 Hard
z z z z
Accessibility : Keyboard Navigation
z z z
Accessibility : Screen Reader Compatible
z z z z z
Gradable : automatic
z z z
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
z z z z z z z z z z z z z z
Topic : Time Value of Money
z z z z z z
4) If a $10,000 investment earns a 7 percent annual return, what should its value be after 4
z z z z z z z z z z z z z z z z
years? Use Exhibit 1-A.
z z z z
4) z
Version 1 z 2
, A) $13,110
B) $12,800
C) $10,700
D) $10,035
E) $14,700
Question Detailsz
Bloom's : Apply
z z z
Difficulty : 3 Hard
z z z z
Accessibility : Keyboard Navigation
z z z
Accessibility : Screen Reader Compatible
z z z z z
Gradable : automatic
z z z
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
z z z z z z z z z z z z z z
Topic : Time Value of Money
z z z z z z
5) If Melinda Miller estimates that her $350 weekly grocery bill will increase at an annual
z z z z z z z z z z z z z z
inflation rate of 3 percent, what should her weekly grocery bill be in 2 years? Use Exhibit 1-A.
z z z z z z z z z z z z z z z z z z
5) z
A) $70.00
B) $105.00
C) $371.35
D) $473.35
E) $380.45
Question Detailsz
Bloom's : Apply
z z z
Difficulty : 3 Hard
z z z z
Accessibility : Keyboard Navigation
z z z
Accessibility : Screen Reader Compatible
z z z z z
Gradable : automatic
z z z
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
z z z z z z z z z z z z z z
Topic : Time Value of Money
z z z z z z
Version 1 z 3
, 6) If you deposit $500 into a certificate of deposit earning 3.8 percent, what would be your
z z z z z z z z z z z z z z z
earnings after 12 months?
z z z z
6) z
A) $538.00
B) $500.00
C) $16.50
D) $21.50
E) $19.00
Question Details z
Bloom's : Apply
z z z
Difficulty : 3 Hard
z z z z
Accessibility : Keyboard Navigation
z z z
Accessibility : Screen Reader Compatible
z z z z z
Gradable : automatic
z z z
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
z z z z z z z z z z z z z z
Topic : Time Value of Money
z z z z z z
7) Randy Hill wants to retire in 25 years with $1,500,000. If he can earn 10 percent per year
z z z z z z z z z z z z z z z z z
on his investments, how much does he need to deposit each year to reach his goal? Use Exhibit
z z z z z z z z z z z z z z z z z z
1-B. (Round your answer to the nearest dollar.)
z z z z z z z z
7) z
A) $15,252
B) $30,000
C) $60,000
D) $14,752
E) None of these choices are correct.
z z z z z
Version 1 z 4
