Question 50 (0.8 points) Which of the following are Must-Have foods, as opposed to Wants foods? Dried beans Somewhat expensive healthy fruits and vegetables like oranges and broccoli. Middle priced grocery store coffee Any of the above can be considered Must-Have. What you consider Must-Have food is a personal thing (and this is true of Must-Haves in general). A certain amount of food is Must-Have because you would die without it, but some food is a luxury, a Want. What you consider Must-Have for food is a personal thing. It's the food that you really wouldn't want to do without even in a crisis like a job loss. For some people, very concerned with their health, relatively expensive fruits and vegetables would be considered Must-Have. For others, only the cheapest food like pasta, rice, beans, etc. would be considered Must-Have. It's a personal thing, but whatever you decide your personal Must-Haves are, it's crucial that you make sure they add up to less than 50% of your after tax pay during stable normal times. Thus, if you do consider more expensive healthy friuts and vegitables Must-Have (which can make a lot of sense), you may need to spend less on, say, a house to keep your Must-Haves still under 50% (and always try to drive your Must-Have percentage lower as you get older, by doing things like paying off your mortgage, and not increasing your Must-Haves too much, if at all, when you get a raise.) - This is what I believe is the correct answer. I want to make sure this is clear to everyone in their budgeting. Question 51 (0.8 points) Cornell economist Robert Frank makes a strong case that position, context, and prestige have a big effect on human happiness and wellbeing. But Professor Serlin believes that this can be kept in mind, and used, to make our lives better and increase our personal financial success. How? Always think of how nice what you have is, how there are many people in the world who would love to have your car, your home, your kitchen. Then you will enjoy what you have much more, and will not feel compelled to put yourself at risk keeping up with those who have more expensive things. You will not feel compelled to work yourself into the ground to try to keep up, or meet some standard that you feel you must have, even though what you have would be considered very high quality by many people, and by most families a generation or two ago who lived very happily. I believe this is true and very important, and I want to make sure everyone understands this. Thus, these are free points. The answer is True. True OO False Question 52 (0.8 points) Using spread sheet 1, "X Dollars Saved Grows to...", of the Future Wealth Calculator Excel workbook, if you invest $500 in the Wilshire 5000, and it earns its historic average real inflation-adjusted return of about 7%, how much money will this grow to after 50 years? Due to computer grading, please enter your answer in this format: xxx,xxx. For example 172,307 is correct, not $172,307. Also, please don't include cents, so 172,307.24 is incorrect, as is 172,307.00. Please for any of these financial calculator problems just use the format I have specified, no cents, only the dollars, with the standard comma after every 3 digits to make the number clearer to the reader. A/ Question 53 (0.8 points) Using spread sheet 1, "X Dollars Saved Grows to...", of the Future Wealth Calculator Excel workbook, if you invest $500 in the Wilshire 5000, and it earns its historic average real inflation-adjusted return of about 7%, how much money will this grow to after 70 years? Due to computer grading, please enter your answer in this format: xxx,xxx. For example 172,307 is correct, not $172,307. Also, please don't include cents, so 172,307.24 is incorrect, as is 172,307.00. Please for any of these financial calculator problems just use the format I have specified, no cents, only the dollars, with the standard comma after every 3 digits to make the number clearer to the reader. A/ Question 54 (0.8 points) Using spread sheet 2, "Constant Monthly Savings", of the Future Wealth Calculator Excel workbook, if you and your spouse invest $500 each in the Wilshire 5000, for a total of $1,000 invested, every month, and the Wilshire 5000 earns its historic average real inflation-adjusted return of about 7%, how much money will you have after 20 years? Due to computer grading, please enter your answer in this format: xxx,xxx. For example 172,307 is correct, not $172,307. Also, please don't include cents, so 172,307.24 is incorrect, as is 172,307.00. Please for any of these financial calculator problems just use the format I have specified, no cents, only the dollars, with the standard comma after every 3 digits to make the number clearer to the reader. A/ Question 55 (0.8 points) Using spread sheet 2, "Constant Monthly Savings", of the Future Wealth Calculator Excel workbook, if you and your spouse invest $500 each in the Wilshire 5000, for a total of $1,000 invested every month, and the Wilshire 5000 earns its historic average real inflation-adjusted return of about 7%, how much money will you have after 25 years? Due to computer grading, please enter your answer in this format: XXX,XXX. For example 172,307 is correct, not $172,307. Also, please don't include cents, so 172,307.24 is incorrect, as is 172,307.00. Please for any of these financial calculator problems just use the format I have specified, no cents, only the dollars, with the standard comma after every 3 digits to make the number clearer to the reader. A/ Question 56 (0.8 points) Using spread sheet 2, "Constant Monthly Savings", of the Future Wealth Calculator Excel workbook, if you and your spouse invest $500 each in the Wilshire 5000, for a total of $1,000 invested, every month, and the Wilshire 5000 earns its historic average real inflation-adjusted return of about 7%, how much money will you have after 30 years? Due to computer grading, please enter your answer in this format: XXX,XXX. For example 172,307 is correct, not $172,307. Also, please don't include cents, so 172,307.24 is incorrect, as is 172,307.00. Please for any of these financial calculator problems just use the format I have specified, no cents, only the dollars, with the standard comma after every 3 digits to make the number clearer to the reader. Question 57 (0.8 points) Using spread sheet 2, "Constant Monthly Savings", of Future We Calculator Excel workbook, if you and your spouse invest $500 each in the Wilshire 5000, for a total of $1,000 invested, every month, and the Wilshire 5000 earns its historic average real inflation-adjusted return of about 7%, how much money will you have after 40 years? Due to computer grading, please enter your answer in this format: XXX,XXX. For example 172,307 is correct, not $172,307. Also, please don't include cents, so 172,307.24 is incorrect, as is 172,307.00. Please for any of these financial calculator problems just use the format I have specified, no cents, only the dollars, with the standard comma after every 3 digits to make the number clearer to the reader. A Question 58 (0.8 points) Using spread sheet 3, "Increasing Monthly Savings", of the Future Wealth Calculator Excel workbook, if you and your spouse invest $400 each in the Wilshire 5000 once you start saving, for a total of $800, each month, but then every 4 years, due to raises and promotions, you increase your monthly savings installment by 20%, and if the Wilshire 5000 earns its historic average real inflation-adjusted return of about 7%, how much money will you have after 20 years? Due to computer grading, please enter your answer in this format: xxx,xxx. For example 172,307 is correct, not $172,307. Also, please don't include cents, so 172,307.24 is incorrect, as is 172,307.00. Please for any of these financial calculator problems just use the format I have specified, no cents, only the dollars, with the standard comma after every 3 digits to make the number clearer to the reader. A Question 59 (0.8 points) Using spread sheet 3, "Increasing Monthly Savings", of the Future Wealth Calculator Excel workbook, if you and your spouse invest $400 each in the Wilshire 5000 once you start saving, for a total of $800, each month, but then every 4 years, due to raises and promotions, you increase your monthly savings installment by 20%, and if the Wilshire 5000 earns its historic average real inflation-adjusted return of about 7%, how much money will you have after 30 years? Due to computer grading, please enter your answer in this format: xxx,xxx. For example 172,307 is correct, not $172,307. Also, please don't include cents, so 172,307.24 is incorrect, as is 172,307.00. Please for any of these financial calculator problems just use the format I have specified, no cents, only the dollars, with the standard comma after every 3 digits to make the number clearer to the reader. A Question 60 (0.8 points) Is it always best to pay down your debt as fast as possible? a) Yes, there are no exceptions. b) No, for example, you may have so much debt, at such high interest, that no matter how hard you try, even for the rest of your life, you will never pay it off. The balance will grow faster than you can pay it down, even if you live on nothing, because of the high amount owed and high interest rate. In this case, it is financially best to waste no further money, and start over as soon as possible with bankruptcy, and try to be smarter and better next time. c) No, for example, some debt is on very advantageous terms, like government student loans when you've qualified for public service loan forgiveness, so that effectively the interest is very low, and much of your balance will be forgiven anyway in ten years, sometimes less. In this case, you will be better off with regard to wealth generation paying off as little as is required, and putting the rest of your money into a relatively better return investment like the Wilshire 5000, or other highly diversified total stock market fund. d) This is, more or less, generally good advice, but there are certainly exceptions. e) a and b above. f) b and c above. g) b, c, and d above. h) a, b, c, and d above