1.

Ian and Lilly contribute $250 each month to their retirement account. They anticipate being able to earn 7% on their investments and that inflation will average 3% until they retire in 25 years. Approximately how much will be in their account when they retire?

		A. $126,400
		B. $126,800
		C. $202,500
	D.	$203,700

2.

Aaron wants to fund his 3-year-old son Isaacs college education. The current cost of tuition is $20,000 per year and he expects it to increase 9% per year. He also anticipates earning 8% per year on his investments. Approximately how much does Aaron need to contribute at the end of each quarter to fund half of four years of college for Isaac?

A. $1,220

B. $1,245

C. $1,270

D. $1,295

3.

Brian contributed $70,000 to his daughters 529 plan this year. If he gets hit by a bus early next year and dies, what amount will be included in his gross estate related to the 529 plan?

A. $0

B. $28,000

C. $42,000

D. $70,000

4. Jose likes to drive cars until they have 50,000 miles on them. He typically drives 20,000 miles per year since he loves to drive up and down the California Coast. Which of the following is the best option for Jose to obtain a new car?

		A. Buy with a 3-year loan
		B. Buy with a 5-year loan
		C. Lease with a 3-year term
		D. Lease with a 5-year term