1. Nancy is being offered a series of 6 annual payments in exchange for her ownership in a widget factory. The first payment of $200,000 will be payable immediately. Future payments will grow at a rate of 20 percent per year. If Nancy can earn 9 percent on her investments, what would the lump-sum equivalent of the offer be worth today? A, $868,715.27 B, $956,383.78 C, $1,546,699.49 D, $1,702,788.43

2. To what amount (rounded to the nearest dollar) will $8,000 grow in 3 years in a savings account that earns 8 percent interest compounded weekly? A. $10,078 B. $10,123 C. $10,146 D. $10,168

3. What is the correct definition of a pooled special needs trust? A. the most widely used SNT; frequently used as an estate planning tool for incapacitated persons B. established by nonfamily or interested parties on behalf of an incapacitated person C. funded with personal injury lawsuit damages received by the incapacitated individual from a court decision D. funded with assets that are commingled with numerous other sources to increase investment results. Each state has a nonprofit organization established to achieve investment benefits.

4. Which of the following statements concerning the financial planning pyramid is correct? A. As the client moves up the pyramid, the focus of the plan shifts from wealth accumulation goals to income protection needs. B.The middle part of the pyramid is built with emergency savings, insurance coverages, and a properly drawn will. C.The pyramid is a widely accepted approach for developing a comprehensive financial plan over a period of time. D.The foundation of the pyramid addresses both the management of retirement assets and the conservation/distribution of the estate.

5. Which of the following is the appropriate standard of conduct for a fiduciary? A, acting in the client's best interest B. acting as a prudent man C. acting on a best efforts basis D. acting on self-interest