FHCE 3200 questions with verified
answers rated A+
"I want to retire with $1,000,000 in the bank" represents what element(s) of a SMART goal?
a) specific
b) attainable
c) realistic
d) all of the above - correct answer ✔✔ d
assume you can earn 1% interest monthly on your savings. what is your APR and APY? - correct
answer ✔✔ APR: 12%
APY: 12.68%
How many years it will take to grow $3,000 to $6,000 earning 3% interest? - correct answer ✔✔
72/3 = 23.45 (~24 years)
What interest rate will turn $3,000 into $6,000 over 6 years? - correct answer ✔✔ 72/6 = 12%
Let's say that you receive $1,000 at your college graduation. If you invest the gift and earn 8%
annually, how much will you have in 20 years? - correct answer ✔✔ $4,660.96
You are offered the choice of taking $1,000 today or $1,200 in 5 years. Let's say you can earn
5%. - correct answer ✔✔ PV = $940.23
, How much will you accumulate in 20 years if you start saving $1,000 every year and earn 9% on
your savings? - correct answer ✔✔ FVA = $51,160.11
Imagine that you have just received a large inheritance with the following choice: (1) take a
lump sum of $1,000,000 today or (2) receive $75,000 per year for the next 20 years. The interest
rate is 5%. - correct answer ✔✔ PVA = $934,665
Amy has $3,000 saved to buy a new car. If she can earn a 7% rate of return for 3 years, how
much will she have (approximately) at the end of the 3 years?
a. $3,210
b. $3,630
c. $3,675
d. $3,884 - correct answer ✔✔ c
Which of the following is an example of a SMART goal?
a) Retiring at age 65 with enough money to live comfortably
b) Purchasing a new 65-foot sailboat in 3 years
c) Starting a business in a few years that will generate $300,000 in net sales
d) Saving $75,000 for the down payment on a home that will be purchased in 4 years - correct
answer ✔✔ d
Burt makes $3,300 per month.
He pays $800 in taxes, $700 in rent, $450 on food, $225 for a car payment, $150 in gas and
maintenance, and $700 in entertainment every month.
What is Burt's surplus or deficit?
a. $0
answers rated A+
"I want to retire with $1,000,000 in the bank" represents what element(s) of a SMART goal?
a) specific
b) attainable
c) realistic
d) all of the above - correct answer ✔✔ d
assume you can earn 1% interest monthly on your savings. what is your APR and APY? - correct
answer ✔✔ APR: 12%
APY: 12.68%
How many years it will take to grow $3,000 to $6,000 earning 3% interest? - correct answer ✔✔
72/3 = 23.45 (~24 years)
What interest rate will turn $3,000 into $6,000 over 6 years? - correct answer ✔✔ 72/6 = 12%
Let's say that you receive $1,000 at your college graduation. If you invest the gift and earn 8%
annually, how much will you have in 20 years? - correct answer ✔✔ $4,660.96
You are offered the choice of taking $1,000 today or $1,200 in 5 years. Let's say you can earn
5%. - correct answer ✔✔ PV = $940.23
, How much will you accumulate in 20 years if you start saving $1,000 every year and earn 9% on
your savings? - correct answer ✔✔ FVA = $51,160.11
Imagine that you have just received a large inheritance with the following choice: (1) take a
lump sum of $1,000,000 today or (2) receive $75,000 per year for the next 20 years. The interest
rate is 5%. - correct answer ✔✔ PVA = $934,665
Amy has $3,000 saved to buy a new car. If she can earn a 7% rate of return for 3 years, how
much will she have (approximately) at the end of the 3 years?
a. $3,210
b. $3,630
c. $3,675
d. $3,884 - correct answer ✔✔ c
Which of the following is an example of a SMART goal?
a) Retiring at age 65 with enough money to live comfortably
b) Purchasing a new 65-foot sailboat in 3 years
c) Starting a business in a few years that will generate $300,000 in net sales
d) Saving $75,000 for the down payment on a home that will be purchased in 4 years - correct
answer ✔✔ d
Burt makes $3,300 per month.
He pays $800 in taxes, $700 in rent, $450 on food, $225 for a car payment, $150 in gas and
maintenance, and $700 in entertainment every month.
What is Burt's surplus or deficit?
a. $0
