Question I (Subject Area: Finandial Management) lonathan is applying for a personal foan from a local bunk. As part of its standard proceduee for boan asvesstient, the bank has arked him to provide his Enancial information ienathan provides the requested inlormation as follows: Bank Deposits $50,000 Treasury Bilis $55,000 3-month Certikate of Deposa 550,000 Crecit Card Balance \$10.000 Listed Stocks $120,000 Life inqurance Cash Value $125,000 MVF Account Balance $350,000 Mortgake toan 51,500,000 Residential Flat 53,000,000 What is Jonathan's net worth? A. 51,880,000 B. $2,115,000 c. $2,240,000 D. $3,750,000 Questien 2 (5ubject Area: Financial Management) Mr, and Mrs. Yung, both aged ts and each with a life expectancy of 90 , have a current arnual household income of $600000. They would the to retire in 12 years' time on 700 of their current income adjusted for inflation. They aho wish to lewe an estate of 53 million to their anly daughter, Tina, upon ther deaths. The inflation rase is expected to be 3% p.a. in order to achieve the rungi" objectives, how much casital should they acrumulate at age 60 if the expected tate of return is sis pa.? A. 57.04 mition B. $7.29 milion C. 59.36 milion D. 510.00 million Question 3 (Subject Area: Finaneial Management) Ronaid has taken ost a car loan of 5280,000 to be repaid over 3 years. Interest rate is at 3.5% for the tirst year, 4.5% for the second vear, and 5.5N for the third year. Calculate Fonald's monthly payment in the first, secend and third yeac respectively. A. 58,205;57,924;57,421 B. 35,205, \$8,289; \$9,334 C. $3,205,$12,221;$24,034 D. $8,329;$8,329,$8,329 Duestion 4 (fuleject Areac I inancial Nonagement) Which of the foliowing trpet of businest owmenhip imply that the nature of the liablity of the owneris\} with tespect to the bosineis it a perrohpl art? 1. Limted hablity company. 1. Partnership. 21. Sole proprietorshia A. III enly B. I It II only C. II E. WI only D. L. II 8. III Querdon 5 (5ubject Area: Financial Managetsent) Ruby is 60 years old and evpects to lye until at itant agt 80 . She is considering a proposal her 52,500 gee month for the test af her kfe uribil whe gusaen awar-Aswame Pulay ifvests her Hvinges in US Treasury bills fus T-Buts\} earning a rate of rethurn of 35 p. a which of the foilowing 1. The rate of return on the anhcity is highee than the rate pl teturn an US T-Dals. 1. The rate of retum an the anmyity is the sarmes twe rate of ceturn on u5. T-8its. 11. The rate of retum on the annuity is lowet than the rate of reburn on U5 F-balls. W. The present value of benett payments ta be mate tram the anmuty are aorth more thant its preminm. V. The present value of beneft payments to be made tram the anmaty are worth less than its premium. A. I b thenty B. II S. FV only C. It \& V orly D. til B. V colly Question 6 (5ubject Area. Financial Planning Principle-1) dowritum. Which of the following are approprute actions that Robert's financial planner should recommend him to take in the evert of a praionged period of reduced income?. 1. Keep up his monthly savines plans. 1. Reduce has dicertioean apending. Al Reduce tis financial reyponsibulien A. I \& = on'y B. I Bili only C. II \& It enly D.,11 B inf Question 7 (Subject Areas Financial Planning Principles) Generally speaking a finantial plancer is expected to ensure that the dient's t. goals are prionitized in the order of importance. 11. investment goals are clearly stated. III. risk tolerance kevel is maintained. A. I only B. I 8 il only C. 18II enly D. II a \|ll only Question 8 (Subject Area: Financial Planning Principles) Amy and Ben are a married couple aged 30 and 32 respectiveli, they are concerned about their heary debt load as below: 1. Mortgage fieterest at 4.5% p a 1:52,000,000 11. Unsecured credit line (interest at 6.5% p.a.j: $15,000 III. Amy's student loan (interest at 10k p a 1: 40,000 IV. Amy's credit card balance (interest at 15\% p.a.): $10,000 Their goal is to pay off their mortgage loan as quickly as possible. List, from the FiRST to the LAST, the order in which their debt should be paid off that will be the MOST cost-effective for them. A. I, III, II, IV C. 1N,I,II,III D. N4,II,II,I Question 9 (Subject Area: Retitement Planining) A financial planner is witing an article on financial activities for readers over 60 years of age whe have a persenat proble typical for that age group. To cater for the common needs of this age group, the planner should emphasize which of the following topics in the article? 1. Estate planting. II. Long-term heathcare coverage. Iii. Real estate imestments. IV. Recirement planning- Question 7 (Subject Areas Financial Planning Principles) Generally speaking a financial planiner is expected to ensure that the cletit's L. goals are prionitized in the order of importance. 11. investment goals are clearly stated. III. risk tolerance level is maintained. A. I only B. I Bull only C. 18 ii only D. II \& Ill only Question 8 (Subject Area: Financial Planning Principles) Amy and Ben are a married couple aged 30 and 32 respectively, they are concerned about their heavy debt load as below: 1. Mortgage fieterest at 4.5N p. a. 1:52,000,000 11. Unsecured credit line (interest at 6.5$5 p. a.j: $15,000 III. Amy's student loan finterest at 10% p a 1: 440,000 IV. Amy's credit card balance (interest at 15\% p.a.j: $10,000 Their goal is to pay off their mortgage loan as quichy as possible. List, from the FiRST to the LAST, the order in which their debt should be paid off that will be the MOSt cost-effective for them. A. 1., III, II, IV B. 1, F4,m,II C. 1N,I,II,III D. IVdII,II,I Question 9 (Subject Areat Retitement Ptanining) A financial planner is writing an article en financial activitits for feaders over 60 years of age whe have a persenal prokle typical for that age group. To cater for the common needs of this age group, the planner should emphaske which of the following topics in the article? 1. Estate planning. II. Long-term heathcare coverage. iii. Real estate imestments. IV. Recirement planning. c. re, La. = Q. 1, , Et, t., 1. telute planery. 1. Longtarm teulticane coveragn N. Retivenet ravere 4. 18 il mery B. ie B Waty C. Lisk Nenty 2. 1. 1iBN rily be inclusted in Rowe' "retwitel nuome"? 4 Mochty alsey aid by foetly a. inery 1. I the ther C. II A it axy 2. 1,18=8