FP 100T Week 1 WileyPLUS Weekly Exam
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FP 100T Week 1 WileyPLUS Weekly Exam In this graded assignment, you are assessed on the content covered in this weeks’ readings, activities, and assignments. To help you prepare, it is recommended that you first complete this week’s Learning Path and Self-Test Learning Activities prior to completing this exam.
Complete the Week 1 Exam covering this week’s assigned readings:
“Ch. 1: The Financial Planning Process” “Ch. 2: Financial Planning Tools: Personal Financial Statements and the Time Value of Money” Note: Work submitted in WileyPLUS does not count toward attendance. Be sure to post at least two times each week in the online classroom to avoid being auto-dropped from the course.
Implement your financial plan.
Monitor your progress and revise your plan as needed.
Organize your financial information and set short-term and long term goals.
What is the missing step? Identify and evaluate alternative strategies for meeting your goals.
Understand the personal financial planning process. Acquire the necessary decision-making skills and tools.
Build wealth and protection against emergencies.
Question 10
Your answer is correct.
Your answer is correct.
You estimate your monthly mortgage principal and interest will be $1,000, property taxes will be $160 per month, and homeowner’s insurance will be $50 per month. If your gross monthly income is $4,000 per month and your tax rate is 20 percent, what is your mortgage debt service ratio?
Your answer is correct. You expect to receive a sum of money 10 years from now, and you want to know how much it is worth today. Which time value of money calculation should be used to solve this problem?
future value of an annuity
present value of a lump sum present value of an annuity future value of a lump sum
Question 21
Your answer is correct. You plan to invest $2,000 every year (end-of-year payments) from now until you retire in 30 years. If you can earn 7% annually on your invested funds, how much will you have when you retire?
$15,225
$25,081
$188,922
$204,146 Question 22 Your answer is correct. In order to determine how much you would need to save yearly in order to finance your child’s college education in 10 years, you would us
future value.
You are considering two amortized loans with the same interest rate and the same initial amount borrowed. If the number of months to repay Loan X is greater than the number of months to repay Loan Y, the monthly payment on Loan X will be _____ than the payment on Loan Y.
higher
Lower -----------------------------------------------------------------------------------------------------
FP 100T Week 2 WileyPLUS Weekly Exam
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FP 100T Week 2 WileyPLUS Weekly Exam
In this graded assignment, you are assessed on the content covered in this week’s readings, activities, and assignments. To help you prepare, it is recommended that you first complete this week’s Learning Path and Self-Test Learning Activities prior to completing this exam. • “Chapter 3: Budgeting and Cash Management”
• “Chapter 4: Tax Planning”
Note: Work submitted in WileyPLUS does not count toward attendance. Be sure to post at least two times each week in the online classroom to avoid being auto-dropped from the course.
Question 1 Your answer is correct. If you write a check or use your debit card when there isn’t enough money in your account to cover the payment, this is known as
being unbanked.
skimming.
a stop payment. an overdraft. Question 2 Your answer is correct. Simone spent an average of $500 each month on groceries last year for herself and her family. She is now forecasting the family budget for next year. She read that an inflation rate of 5% is expected. How much should Simone budget for the monthly food expense next year?
transgressive.
illegal.
regressive. progressive. Question 18 Your answer is correct.
Lee earned a salary of $25,000 from his job as a server last year. In addition, he earned $12,500 in tips, $135 in interest income, and $200 in dividend income from investments. What was Lee’s total income last year? Question 25 Your answer is incorrect. The dollar amount per qualifying household member that is subtracted from adjusted gross income is known as a reduction. a tax credit. a deduction. an exemption. -----------------------------------------------------------------------------------------------------
FP 100T Week 3 WileyPLUS Weekly Exam
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FP 100T Week 3 WileyPLUS Weekly Exam In this graded assignment, you are assessed on the content covered in this weeks’ readings, activities, and assignments. To help you prepare, it is recommended that you first complete this week’s Learning Path and Self-Test Learning Activities prior to completing this exam. Complete the Week 3 WileyPLUS Weekly Exam covering this week’s assigned readings: “Chapter 5: Managing Credit: Credit Cards and Consumer Loans” “Chapter 6: Making Automobile and Housing Decisions” Note: Work submitted in WileyPLUS does not count toward attendance. Be sure to post at least two times each week in the online classroom to avoid being auto-dropped from the course.
Which of the following statements concerning the add-on interest method is true?
The lender subtracts the interest due from the principal before the borrower receives the loan proceeds.
APR than the simple interest method. It usually results in a higher APR than the discount interest method.
Interest is added to the amount borrowed before the payments are calculated. -----------------------------------------------------------------------------------------------------
FP 100T Week 4 WileyPLUS Weekly Exam
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FP 100T Week 4 WileyPLUS Weekly Exam In this graded assignment, you are assessed on the content covered in this week’s readings, activities, and assignments. To help you prepare, it is recommended that you first complete this week’s Learning Path and Self-Test Learning Activities prior to completing this exam.
Complete the Week 4 Exam covering this week’s assigned readings:
“Chapter 10: Saving for Distant Goals: Retirement and Education Funding” “Chapter 11: The Fundamentals of Investing” Note: Work submitted in WileyPLUS does not count toward attendance. Be sure to post at least two times each week in the online classroom to avoid being auto-dropped from the course. Question 1 Which of the following is NOT an income-driven repayment plan for federal student loans? Income-based repayment
Pay as you Earn plan Income deferment plan Income-contingent plan Question 2 If you are not working, you can apply with your loan servicer for which of the following to postpone monthly payments.
Forgiveness
Question 3
What type of loan starts accruing interest at the time of disbursement?
Question 4
Which of the following is the recommended guideline for the maximum amount to borrow in order to keep your monthly payments manageable? Question 5 Your answer is correct.
The American Opportunity tax credit is a tax credit up to a maximum of
$500 for every eligible dependent who has incurred college expenses during the year. $2,500 for every eligible dependent who has incurred college expenses during the year.
Question 6 Your answer is correct.
________ are subject to regulations that resemble those of defined contribution plans offered by employers.
Traditional IRAs
Roth IRAs
Taxable accounts
Annuities
Question 7
Your answer is correct.
When comparing penalties for non qualified withdrawals on the Coverdell Education Savings Account and the two Section 529 plans,
which of the following has/have a penalty of earnings subject to income tax plus a 10% penalty?
All three plans
Coverdell Education Savings Account
Section 529 Prepaid Tuition plan
Question 8
Your answer is correct.
Which of the three government college savings programs does not tax growth or qualified withdrawals?
Section 529 Prepaid Tuition plan
Section 529 Savings plan Coverdell Education Savings Account All of the choices are correct.
Question 9
Your answer is correct.
Carla and Ben have been married for 50 years. During that time, Carla stayed home raising their children and maintaining their household while Ben worked for an engineering firm. When they reach retirement age, together Ben and Carla are eligible to receive 150% of Ben’s Social Security benefits. half of Ben’s Social Security benefits. only Ben’s Social Security benefits. 200% of Ben’s Social Security benefits.
Question 10
Your answer is correct.
The Lifetime Learning tax credit is a credit of
30 percent of the first $5,000 of college expenses up to a maximum of $1,500 for every eligible dependent who has incurred these expenses during the year.
20 percent of the first $5,000 of college expenses up to a maximum of $1,000 for every eligible dependent who has incurred these expenses during the first two years of college. 30 percent of the first $5,000 of college expenses up to a maximum of $1,500 for every eligible dependent who has incurred these expenses during the first two years of college.
20 percent of the first $10,000 of tuition and fees up to a maximum of $2,000 for every eligible dependent who has incurred these expenses during the year. Question 11 In order to estimate your retirement income shortfall in the first year of retirement, you need to subtract your expected income from employer
DB retirement plans from your before-tax income need in your first year of retirement, and then ________ expected Social Security benefits.
subtract
add multiply by
Question 12 Your answer is correct. Marnie and John have a joint and survivor annuity. This means that the annuity pays a benefit until the second spouse dies.
the annuity pays a double benefit for their entire lives.
the annuity pays a benefit until the first spouse dies.
only the beneficiaries receive a benefit after both Marnie and John die.
Question 13 Your answer is correct. If Jack Miller were to underestimate the effects of inflation on his retirement income, his standard of living in retirement could consistently__________ as he gets older. increase
decline stay the same improve Question 14 Evan works for an employer that does not provide a retirement plan as a benefit. He earns $175,000 per year. He plans to fund his own retirement account through his local bank. Which of the following would BEST suit Evan? A traditional IRA
A Roth IRA A taxable account
An annuity Question 15 The minimum rate of return is usually called the nominal risk-free rate.
nominal inflation rate.
expected rate of return.
expected required return. Question 16
Your answer is correct.
Reinvestment risk is greatest for
short-term debt securities.
long-term debt securities.
bonds.
common stock.
Question 17
Your answer is correct.
A bear market occurs when
the market is generally rising.
the market is generally declining.
the market is very volatile.
the market is fairly stagnant.
Question 18
Your answer is correct.
Portfolio diversification in the real world can be employed to
reduce risk of a portfolio up to a point.
eliminate the risk of a portfolio completely.
primarily increase the return of a portfolio.
primarily reduce the return of a portfolio.
Question 19
Your answer is correct.
________ is a type of investing strategy in which you purchase a collection of bonds with different maturities spread out over your investment horizon.
Laddering
Buy-and-hold
Indexing
DRIP
Question 20 Your answer is correct.
In order to assess the performance of a diversified mutual fund invested in stocks, one would use the ________ because it is a broad benchmark.
S&P 500
Dow Jones Industrial Average
NASDAQ Composite Index
Lehman Brothers US Treasury Index
Question 21
A major advantage of a buy-and-hold strategy is
greater expected return.
buying securities at their lowest price.
lower transaction costs.
lower default risk.
Question 22
If you purchase $100 of stock every month, you are practicing
market timing.
dollar cost averaging.
asset allocation. diversification. Question 23
Your answer is correct.
The statement “Don’t put all your eggs in one basket” is recommending
active investing.
market timing.
diversification.
portfolio management.
Question 24
Your answer is correct.
Dollar cost averaging will result in
a smaller return than a buy-and-hold strategy if prices are rising.
a lower average purchase price than the average price over the long term.
a higher average purchase price than the average price over the long term.
a greater return than a buy-and-hold strategy if prices are rising.
Question 25
Your answer is correct.
Which of the following is not one of the strategies for successful investing?
Do your homework.
Hire a full-service broker to make your investment decisions.
Keep accurate records.
Understand and take advantage of tax rules. -----------------------------------------------------------------------------------------------------
FP 100T Week 5 WileyPLUS Weekly Exam
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FP 100T Week 5 WileyPLUS Weekly Exam
In this graded assignment you are assessed on the content covered in this weeks’ readings, activities, and assignments. To help you prepare, it is recommended that you first complete this week’s Learning Path and Self-Test Learning Activities prior to completing this exam.
Complete the Week 5 Exam covering this week’s assigned readings:
• “Chapter 12: Investing in Stocks and Bonds”
• “Chapter 13: Investing in Mutual Funds and Real Estate”
Note: Work submitted in WileyPLUS does not count toward attendance. Be sure to post at least two times each week in the online classroom to avoid being auto-dropped from the course.
Question 1
A share of noncallable preferred stock has a par value of $100 and pays 7 percent annual interest. Which of the following statements is true?
The stock will pay $7 per year in interest as long as the company is in existence.
The stock will pay $7 in interest in the first year, but the amount paid in future years will depend on what happens to interest rates in the future.
The stock will pay $100 per year in interest for 20 years.
The stock will pay $7 per year in interest and will pay the investors back the $100 par value at maturity.
Question 2
Your answer is correct.
Which of the following statements regarding bonds and inflation risk is true?
Rising inflation will generally cause bond prices to also rise.
Bonds are less influenced by inflation risk than are common stocks.
Long-term bonds have less inflation risk than short-term bonds.
Bond investors will require higher yields on bonds if inflation rises.
Question 3
Your answer is correct.
Aeryn Soon is a potential investor of Hippy Dippy Inc.’s preferred stock, which is currently selling for $475 per share. Hippy Dippy pays an annual dividend of $40, and Aeryn’s required return is 8 percent. Should she purchase this preferred stock or NOT? Why?
Yes, because the value of the preferred stock is $500.
No, because the value of the preferred stock is $250.
Yes, because the value of the preferred stock is $250.
No, because the value of the preferred stock is $500.
Question 4
Yield to maturity is a popular measure because it tells an investor
the annualized yield they will earn if they hold the bond to maturity.
the yield they will earn if they sell the bond today.
how much interest they will receive each year.
none of the above.
Question 5
Your answer is correct.
Riskier companies tend to pay ________ dividends than less risky companies.
higher
lower
Question 6
Aliyah purchased Verizon Communications stock in April 2015 for $48.90 per share. She sold the stock one-year later for $54.01 per share. Calculate her capital gains yield.
5.11%
9%
9.46%
10.45%
Question 7
Your answer is correct.
A bond investor is a/ an
creditor.
lender and creditor.
lender.
owner.
Question 8
Your answer is correct.
Large-cap companies have market capitalization greater than or equal to
$10 million.
$1 billion.
$5 billion.
$100 million.
Question 9
Your answer is correct.
When a stock split occurs,
owners of stock end up with a lower proportionate number of shares.
the company expects the value of shares to go down in the future.
the price of new shares is lower than the old price.
the market usually views the split as bad news about future prospects for the company.
Question 10
Your answer is correct.
Which of the following portfolio strategies is the most risky?
Investing 100 percent in a small-cap technology company
Investing 50 percent each in a small-cap technology company and a blue chip manufacturing company
Investing 100 percent in a blue chip manufacturing company
Investing equally in 20 stocks that are all in different industries
Question 11
John is considering purchasing some preferred stock from BBCC Corp. The company pays a $30 annual dividend on its preferred stock, and John believes he should earn 7 percent on the stock based on the company’s risk profile. What is the value of the stock per share?
$428.57
$42.86
$2.10
$210.00
Question 12
Your answer is correct.
The most common arrangement for bond coupon payments is
fixed-rate interest paid in semiannual payments.
floating-rate interest paid in annual payments.
zero-coupon payments.
indexed-rate payments.
Question 13
Your answer is correct.
Which statement regarding load mutual funds is true?
The most common type of load is a front-end load.
The load can be as high as 10 percent of the purchase price of the shares.
A back-end load is part of the expense ratio.
Load funds make more sense for active investors than buy-and-hold investors.
Question 14
Your answer is correct.
The basic equation for real estate return on investment is the increase in value plus the net rental income, minus the interest expense, all of which is divided by which financial component?
beginning investment
capital appreciation
ending outlay
market price
Question 15
Your answer is correct.
A life-cycle fund purchases assets designed to meet the needs of individuals in
retirement only.
middle-income earning years.
a particular stage of life.
high-income-earning years.
Question 16
Your answer is correct.
Financing the purchase of an investment in real estate with a mortgage at the time of borrowing at a low rate of interest and investing in assets that earn more than what they cost puts you ahead of the game due to the concept of
leverage.
diversification.
return on investment.
price appreciation.
Question 17
Your answer is correct.
Which fund classification would a focus on only stocks of Chinese companies match?
Growth fund
Income fund
Balanced fund
International fund
Question 18
Maryanne invested $1,000 in a mutual fund three weeks ago and noticed she was charged $85 for the purchase. Which kind of fund did she likely buy?
a front-end load fund
a back-end load fund
a no-load fund
an initial load fund
Question 19
Your answer is correct.
Which fund classification would a focus on assets that pay interest and/or dividends match?
Growth fund
Income fund
Balanced fund
Global fund
Question 20
Your answer is correct.
Most open-end mutual funds charge a front-end load, which is
a sales charge or commission paid by investors each year that they own shares in the fund.
a brokerage fee that is paid to a broker for selling mutual funds in the secondary market for an investor.
the annual expenses on the fund divided by the net asset value.
a sales charge or commission paid by an investor when purchasing shares in a mutual fund.
Question 21
Your answer is correct.
ABC Fund has 9 million shares outstanding. The fund’s portfolio is now valued at $300 million and the fund owes $18 million to the fund advisors and $5 million for rent and wages. What is the net asset value of the fund?
$30.78
$31.33
$33.00
$34.78
Question 22
Your answer is correct.
Which is a characteristic of an exchange-traded fund (ETF)?
Shares are traded in the secondary market like shares in a closed-end fund.
Shares trade at the net asset value like shares in an open-end fund.
The number of shares outstanding is fixed as in a closed-end fund.
The shares are invested only in common stock of publicly traded corporations.
Question 23
Your answer is correct.
Another term for back-end load is
distribution load.
contingent deferred sales charge.
management load.
operational load.
Question 24
Your answer is correct.
0.05 percent
0.5 percent
5 percent
50 percent -----------------------------------------------------------------------------------------------------
FP 100T Week 1-5 All Wileyplus Exams
For more course tutorials visit www.newtonhelp.com
FP 100T Week 1 WileyPLUS Weekly Exam FP 100T Week 2 WileyPLUS Weekly Exam FP 100T Week 3 WileyPLUS Weekly Exam FP 100T Week 4 WileyPLUS Weekly Exam FP 100T Week 5 WileyPLUS Weekly Exam ----------------------------------------------------------------------------