TEST BANK Focus on Personal Finance 7th
Edition by Jack R. Kapoor, Les R. Dlabay
VERIFIED ACCURATE ANSWERS|
CHAPTER 1-14
ALL ANSWERS ARE AT THE END OF
EACH CHAPTER
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1
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, Chapter 1: Personal Financial Planning in Action
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
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)
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A) $10,000
B) $3,900
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C) $10,380
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2
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,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)
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
Ar
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
ch
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec Topic :
Time Value of Money
Do
3
c
, 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.
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
8) A formalized report that summarizes your current financial situation, analyzes your financial needs, and
recommends future financial activities is a(n):
8)
Ar
A) Insurance prospectus.
ch
B) Financial plan.
Do
4
c
Edition by Jack R. Kapoor, Les R. Dlabay
VERIFIED ACCURATE ANSWERS|
CHAPTER 1-14
ALL ANSWERS ARE AT THE END OF
EACH CHAPTER
Ar
ch
Do
1
c
, Chapter 1: Personal Financial Planning in Action
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
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)
Ar
A) $10,000
B) $3,900
ch
C) $10,380
Do
2
c
,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)
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
Ar
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
ch
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial dec Topic :
Time Value of Money
Do
3
c
, 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.
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
8) A formalized report that summarizes your current financial situation, analyzes your financial needs, and
recommends future financial activities is a(n):
8)
Ar
A) Insurance prospectus.
ch
B) Financial plan.
Do
4
c
