QUESTION 8

What is the dollar cost average price over a 6 month period given the following information?

Annual Gross Salary = $50,000

Month 1, 2, 3 Annual Contribution Rate as a % of Gross Salary = 3.00%

Month 4, 5, 6 Annual Contribution Rate as a % of Gross Salary = 4.50%

* Monthly contributions are used to purchase a security based on the below prices.

Security Prices

Month Price

1 27.45

2 27.34

3 28.00

4 28.60

5 30.00

6 22.90

A.

$27.38

B.

$27.11

C.

$10.42

D.

$27.19

5 points

QUESTION 9

What is the maximum tax deferred amount that may be contributed to an employee's traditional 401K plan in 2016. In 2016, the employee is 55 years old and earned $52,000 in salary. His 401K plan allows maximum catch-up contributions. He has always contributed the maximum allowable amount each year.

A.

$24,000

B.

$53,000

C.

$58,000

D.

$59,000