In evaluating a financial planner prior to his or her hiring, what background information would you find helpful? Check all that apply. The age and model of the car that she or he drives and whether she or he can swim or ride a bike Education and qualifications, including licenses, certifications, credentials, and formal training Professional and client references and feedback Work history, including the companies with whom he or she has been associated Financial planners are compensated using one of four arrangements. These compensation plans can affect both the type and the quality of the services received by their clients. What are these four plans, and how will they affect both the planner and his or her client? The commission-only arrangement means that the sole source of income for financial planners and brokers will be the commissions generated by the The advantage of the commission-only arrangement to the is that a client only pays for the products purchased; and the other financial services provided by the planner are "free." The A disadvantage of this plan, however, is that a planner may be motivated to recommend products that pay him or her the highest commission arrangement provides financial planners with both an up-front fee for the financial they provide and a commission for the financial purchased by a client. The advantage to this arrangement is that the client has already paid for the planner's time, Note: Account A pays simple interest. Future ValueA = Principal + Interest Principal + [(Principal x Interest Rate) x Investment Period] $2,000 + [($2,000 x 7%) x 3 years] Round your answer to two decimal places. Future Value of Account X Note: Account x pays compound interest. Future Valuex = Present Value x Interest Rate Factor Present Value x (1 + Interest Rate)n years $2,000 x (1 + 0.07) Round your answer to two decimal places. To find the interest rate factor, you can use three different ways, including multiplying it out: = 1.2250 Interest Factor = (1 + 0.07) x (1 + 0.07) x (1 + 0.07) Or using exponents and calculating it directly: Interest Factor = (1 + 0.07)3 = 1.2250 Or looking up the value in the Future Value Interest Factor Table