quatentents about the proposed anmuity and the US T aifs ate COARECT7 it The cate of return on the anmaity is tigher than the rate of teturn an us T. thes. if The rate of return on the annulty is the same as the rase of return on US T8ih - 11. The rate of return on the annuity is lower than the rate of retuin on US.T-Ailis. W. The present value of benefit payrnents to be made from the annuity are worth more than its premium. V. The present valive of benefit payments to be made from the anrwity are worth iess than its premium. A. I 2 N oely B. 12 f v only a 8V anly D. iti \& vorly Question 6 (Subject Area: Financial PLanning Principles) Pobert is a 35 -year old single male who has just lost his job as a salesperson due to the recent economic townturn. Which of the following are appropeiate actions that Robert's finarial planner should recommend him to take in the event of a prolonked period of reduced income?? 1. Keep up his monthiy savings plans. ii. Reduce his discretionary spending. iil. Reduce his financial responsibitities. A. 18 only B, 1 ill only c. il 8 it only D. 1, 18 III of tike tolerance lievel is maintained. A tentr A isittony C. I \& itionly p. k want Question \& (Subject Areal Finaneial Planning Principles) Amr end Ben are a married couple aeed 30 and 32 reipectively. they are concerred about theic neawy debt load as belaw: 1. Mortegage (interest at 4.5. a. 1 52.000,000 1. Unseculed cledst line (interest at 6.5\% pa.) \$15.000 II. Amy's student loan finterest at 10% p a }$0,000 Iv Amy's credit card balance finterest at 18$ p.a.1-510,000 Their goal is to pay off their inorizage ioan as quickly as possible. tist, from the FiRST to the LAST, the order in which their debt shauld be paid off that will be the MOST cast effective for them, A. L, III. I., N B. 1,N,,II,II C. N,L,H,III D. 1V,II,H,1 Question 9 (Subject Area: Retirement Planning) A financial planner is writing an article on financial activities for readers over 60 years of age who have a personal profie typical for that age group. To cater for the common needs of this age group, the planner shousd emphasize which of the following toples in the article? 1. Estate planning: 11. Long-term healthcare coverage. III. Real estate investments. v. Retirement planning: Question 10 (Subject Area: Retirement Panning) Fresthly flestaurant (Freshly) tas cmployed hose as a full-time atatew for 6 monthe, Aore receives a fixed monthiy whisy, and at the end of each thonth, she aka receives her share of tips colected by Frestly. She alre cellects tipr directhy feam customeis. When computing contributions to the Mandatory Pravisent fued Stheme, Which of the follawing items shoud be included in kose's "relevant income? 1. Monehly satary paid by Freuhly 11. Rose's share al tips collected by Frestity iil. Tips that Rose collected directiy from custemers A. Ionly B 1 \& only C. II \& ili only D. 4 il \&.lil Question 3 (Subject Area: Financial Management) Ronald has taken out a car loan of $280,000 to be repaid over 3 years. interest rate is at 3.5% for the first year, 4.5% for the second year, and 5.5% for the third year. Calculate Honald's manthly payment in the first, second and third year respectively. A. $8,205,57,924,57,421 B. $8,205;58,289;$8,334 C. 58,205;512,221;524,034 D. 58,329;58,329;58,329 Question 4 (Subject Area: Financial Management) Which of the following types of business ownership imply that the nature of the liabinty of the owner(s) with respect to the business is a pervonal one? 1. Limited Riability company. 1.. Partnership. III. Sole proprietorship. A. III only B. I 8 il only C. II \&.II only D. 1, II \& III Question 5 (Subject Area: Financial Management) Ruby is 60 years oid and expects to live until at least age 80 . She is considering a proposal of an annusty from an insurance company. For a premium of $250,000, the annuity will pay her $2,500 permonth for the rest of her life until she passes away. Assume Ruby invests her Question 1 (Subject Areat Financial Management) Jonathan is applying for a personal loan from a local bank. As part of its standard procedure for loan assessment, the bank has askes him to provide his financial information. Jonathan provides the requosted information as follows: Bank Deposits $50,000 Treasury Bills 555,000 3-month Certificate of Deposit $50,000 Cretit Card Balance $10,000 Listed Stocks 5120,000 tife insurance Cash Value $125,000 MPF Account Balante $350,000 Mortgage Loan $1,500,000 Residential Fat 53,000,000 What is lonathan's net worth? A. $1,880,000 B. 52,115,000 C. $2,240,000 D. $3,750,000 Question 2 (Subject Area: Financial Management) Mr. and Mrs Yung, both aged 48 and each with a life expectancy of 90 , have a current annual household income of 5600,000 . They would tike to tetire in 12 years" time on 70% of their current income adjusted for inflation. They also wish to leave an estate of $3 million to their only daughter, Tina, upon their deaths. The inflation rate is expected to be 3% p.a. in order to achieve the Yunas' objectives, how much capital should they accumulate at age 60 if the expected rate of return is 8p a