Please answer the following questings.

1.Sallys employer stipulates that after 15 years of service, the company will pay her a fixed amount of money annually in retirement. The amount of money paid to Sally is based primarily on the number of years that she worked and her final 4-year average annual salary. This is an example of a:

A) salary reduction plan B) defined contribution plan C) defined benefit plan D) individual retirement arrangement

2. Tim invested in a growth equity mutual fund that paid him $1.20 in dividends last year. The fund also distributed $4.50 in capital gains. If the NAV of the mutual fund increased from $26.75 to $32.50 over the year, what is Tims rate of return?

A) 38.6%

B) 23.4%

C) 34.6%

D) 219.2%

E) 398.3%

3.Approximately how much should you pay for any annuity that promises to pay you $250 every year for 10 years if you require a 5% return on the investment?

A) $407

B) $250

C) $3,145

D) $1,930

E) $154

4. Financial obligations are classified as short term liabilities on the personal balance sheet if payment is due:

A) Within 5 years B) Within 1 year C) Within 30 days D) Immediately upon sale E) At the discretion of the consumer

5. Luke purchased a new home with a mortgage that offers a fixed rate of interest for the first five years. After the fifth year, the mortgage rate adjusts annually based on interest rate movements in the market. This is an example of a:

A) Fixed rate mortgage B) Interest-only mortgage C) Growing-equity mortgage D) Adjustable-rate mortgage (ARM) E) Reverse mortgage

6. All of the following are requirements of a valid will EXCEPT:

A) freedom of choice

B) mental capacity

C) proper execution

D) codicil provision