Test Bank for Focus On Personal Finance 7th Edition Jack Kapoor, Les Dlabay, Robert J. Hughes, Melissa Hart

FULL TEST BANK FOR
Focus On Personal Finance 7th Edition Jack Kapoor, Les Dlabay, Robert J.
Hughes, Melissa Hart
ES
C
Student name:__________
1) If inflation is expected to be 9.50 percent, how long will it take for prices to double?
I E 1) ______


A) 5.58 years
B) 6.58 years
P
C) 17.58 years G
D) 11.58 years
E) 7.58 years
N
Question Details
I
Bloom's : Apply
Difficulty : 3 Hard
S
Learning Objective : 01-01 Identify social and economic influences on financial literacy and personal
Topic : Financial Planning R
Topic : Finance and Economics
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible U
Gradable : automatic


2) If a $12,000 investment earns interest of $1,560 in 1 year, what is its rate of return? N
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
S
Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
E
Topic : Time Value of Money

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


A) $10,000
B) $3,900
P
C) $10,380
D) $10,038
G
E) $3,800 N
Question Details
I
Bloom's : Apply
Difficulty : 3 Hard
S
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Gradable : automatic
R
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
Topic : Time Value of Money
U
4) If a $10,000 investment earns a 7 percent annual return, what should its value be after 4
years? Use Exhibit 1-A.
N
4) ______




Version 1 2

, A) $13,110
B) $12,800
C) $10,700
D) $10,035
ES E) $14,700



Question Details
Bloom's : Apply
Difficulty : 3 Hard
C
Accessibility : Keyboard Navigation
E
Accessibility : Screen Reader Compatible
Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
I
Topic : Time Value of Money
P
5)
G
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.
N
I 5) ______


A) $70.00 S
B) $105.00
C) $371.35
D) $473.35
E) $380.45
R
U
Question Details
Bloom's : Apply
Difficulty : 3 Hard
Accessibility : Keyboard Navigation
N
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




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, 6) If you deposit $500 into a certificate of deposit earning 3.8 percent, what would be your
earnings after 12 months?
6) ______
S A) $538.00
E B) $500.00
C) $16.50
D) $21.50
E) $19.00

EC
Question Details
Bloom's : Apply
Difficulty : 3 Hard
I
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Gradable : automatic
P
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec
Topic : Time Value of Money
G
N
7) Randy Hill wants to retire in 25 years with $1,500,000. If he can earn 10 percent per year
I
on his investments, how much does he need to deposit each year to reach his goal? Use Exhibit
S
1-B. (Round your answer to the nearest dollar.)
R 7) ______


A) $15,252
B) $30,000
C) $60,000
U
D) $14,752 N
E) None of these choices are correct.




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