At which life stage does it become a priority to assess insurance needs?

Points: 1

2. Early career
4. Family and mid-career
6. Education
8. Prime earning

2

Which step in developing a financial plan requires you to define specific actions to achieve your desired objective?

Points: 1

Step 3: Identify and evaluation alternative plans

Step 4: Select and implement the best plan

Step 1: Establish your financial goals

Step 2: Consider your current financial position

3

What is the future value in 2 years if you invest $100 at the beginning of each month for 12 months starting today at a rate of 3%, compounded semi-annually?

Points: 1

2. $1,219.56
4. $1,256.42
6. $1,216.53
8. $1,253.30

5

Which will result in a higher present value, all else equal?

I. Less frequent compounding II. Beginning-of-period rather than end-of-period contributions III. A longer investment period

Points: 1

2. I and III, only
4. II and III, only
6. I, II and III
8. I and II, only

6

How much interest will be paid in the 7th month if you borrow $20,000 at a rate of 6%, compounded monthly, and pay it off over 6 years with monthly payments?

Points: 1

2. $89.04
4. $237.30
6. $331.46
8. $92.97

7

Janice will need to pay $200 at the end of every month for the next 12 months, except for the payment of the 10th month. What is the present value, assuming a rate of 4%, compounded daily?

Points: 1

$2,155.28

2. $2,199.02
4. $2,370.88
6. $2,261.01

8

Temperance's net worth is $45,000. Her debt ratio is 0.5. Her long-term assets total $75,000, and monthly expenses are $3,000. What is her liquidity ratio?

Points: 1

2. 3 months
4. 4 months
6. 5 months
8. 6 months

10

Teddy's gross income is $100,000 and her disposable income is $70,000. Her savings ratio is 6%. What is the minimum emergency fund should she maintain?

Points: 1

2. $23,500
4. $1,500
6. $10,700
8. $16,450