34.

Lauren will make annual contributions in the amount of $4,770, on average, to a 401(k) over the next 34 years. Her employer will match 60% of her contributions. She is currently being taxed at 33%, but anticipates being taxed at 15% upon retirement. If her account grows at an average rate of 5.5% annually, what is the value of Lauren's 401(k) upon retirement? (4 points)

	$381,435.69
	$395,228.47
	$481,057.72
	$610,297.11

35.

Lauren will make annual contributions in the amount of $4,255, on average, to a 401(k) over the next 39 years. Her employer will match 80% of her contributions. She is currently being taxed at 28%, but anticipates being taxed at 10% upon retirement. If her account grows at an average rate of 4.2% annually, what is the value of Lauren's 401(k) upon retirement? (4 points)

	$652,472.84
	$641,333.54
	$485,729.78
	$362,484.91

36.

Victoria has a health care plan with a prescription benefit that offers four different options.

• Option A: $85 monthly premium and $25 co-pay per prescription
• Option B: $75 monthly premium and $30 co-pay per prescription
• Option C: $80 monthly premium and $20 co-pay per prescription
• Option D: $70 monthly premium and $35 co-pay per prescription

If Victoria fills an average of seven prescriptions each month, which option is the least expensive? (4 points)

	Option A
	Option B
	Option C
	Option D

37.

Victoria has a health care plan with a prescription benefit that offers four different options.

• Option A: $90 monthly premium and $25 co-pay per prescription
• Option B: $95 monthly premium and $20 co-pay per prescription
• Option C: $100 monthly premium and $15 co-pay per prescription
• Option D: $105 monthly premium and $10 co-pay per prescription

If Victoria fills an average of 11 prescriptions each month, which option is the least expensive? (4 points)

	Option A
	Option B
	Option C
	Option D

38.

Victoria has a health care plan with a prescription benefit that offers four different options.

• Option A: $55 monthly premium and $20 co-pay per prescription
• Option B: $60 monthly premium and $15 co-pay per prescription
• Option C: $65 monthly premium and $25 co-pay per prescription
• Option D: $50 monthly premium and $30 co-pay per prescription

If Victoria fills an average of five prescriptions each month, which option is the least expensive? (4 points)

	Option A
	Option B
	Option C
	Option D

39.

Maya owns a house valued at $432,600. She still owes $233,458 on her mortgage. How much equity does she have in the house? (3 points)

	$116,729
	$144,200
	$199,142
	$216,300

40.

Maya owns a house valued at $267,900. She still owes $134,762 on her mortgage. How much equity does she have in the house? (3 points)

	$67,381
	$133,138
	$133,950
	$161,462

41.

Zachary's assets and liabilities are shown below. What is his net worth?

Home Value	$167,840
Credit Card Balance	$8,734
Personal Loan	$4,183
Furniture	$7,891
Electronic Equipment	$2,109
Car Loan	$21,450
Savings Account Balance	$6,237
Mortgage	$112,448
Investments	$1,086
Car Value	$24,123

(3 points)

	$62,471
	$79,939
	$70,837
	$46,689

42.

Answer each of the following questions using complete sentences. Part I: Harper is shopping for a home and a mortgage for $175,800 with which to purchase this home. In her search, she was eligible for three different mortgages:

• a 30-year, fixed-rate mortgage at 6.15%
• a 30-year, 6/1 adjustable-rate mortgage at 5.89% with a 2/9 cap
• a 30/6 balloon mortgage at 5.1%

Which mortgage has the least expensive initial monthly payment? How do you know? Part II: Which mortgage is likely to have the lowest total cost? Why? Part III: What are the advantages and disadvantages of a fixed-rate mortgage, an adjustable-rate mortgage, and a balloon mortgage? (6 points)

43.

Suppose your instructor asked you to develop a presentation with a fellow student on IRAs and other retirement savings plans. Describe, using complete sentences, two prewriting strategies you would use before developing this presentation. (4 points)

44.

Respond to each part using complete sentences. Part I: Describe an example of a somewhat diverse portfolio. You must include at least three investments and the percentage of distribution for each. Part II: Explain why this portfolio is somewhat diverse. Part III: Explain whether this portfolio is an aggressive, conservative, or moderate portfolio and why. (6 points)

45.

Austin is a single 26-year-old male attending Blackfeet Community College in a rural town in Montana. He has a 100-mile commute every day. He is accident-free, has good grades, and just bought a fancy new Mercedes due to his recent full-time employment at a local restaurant. The following is a list of the types of coverage Austin may include on his insurance policy:

• Bodily Injury Liability
• Property Damage Liability
• Collision
• Comprehensive
• Medical Coverage
• Uninsured/Underinsured Motorist
• Rental Reimbursement
• GAP Insurance

Part I: Explain, using complete sentences, what types of coverage you would advise Austin to purchase and which he should not. (Assume he can afford all of them.) What was the reasoning behind your advice? Part II: What personal factors will cause Austin's insurance rate to be higher than his counterparts? Part III: What personal factors will allow Austin to receive a discount? (6 points)