Focus on Personal Finance 7th Edition by Jack R.
Kapoor, Les R. Dlabay| TEST BANK
Chapter 1-14| All Chapters Comprising of Verified
Questions & 100% Accurate Answers for the Study
All Answers are at the End of Each Chapter
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, Chapter 1: Personal Financial Planning in Action
1) If inflation is expected to be 9.50 percent, how long will it take for prices to double?
1)
A) 5.58 years
B) 6.58 years
C) 17.58 years
D) 11.58 years
E) 7.58 years
Question Details Bloom's : Apply Difficulty : 3 Hard
Learning Objective : 01-01 Identify social and economic influences on financial literacy and personal
Topic : Financial Planning
Topic : Finance and Economics Accessibility : Keyboard Navigation Accessibility : Screen Reader
Compatible Gradable : automatic
2) If a $12,000 investment earns interest of $1,560 in 1 year, what is its rate of return?
2)
A) 100 percent
B) 79 percent
C) 26 percent
D) 58 percent
E) 13 percent
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
3) If a $10,000 investment earns a 3.8 percent annual return, what should its value be after 1 year?
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3)
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A) $10,000
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,B) $3,900
C) $10,380
D) $10,038
E) $3,800
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
4) If a $10,000 investment earns a 7 percent annual return, what should its value be after 4 years?
Use Exhibit 1-A.
4)
A) $13,110
B) $12,800
C) $10,700
D) $10,035
E) $14,700
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
5) If Melinda Miller estimates that her $350 weekly grocery bill will increase at an annual inflation
rate of 3 percent, what should her weekly grocery bill be in 2 years? Use Exhibit 1-A.
5)
A) $70.00
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B) $105.00
C) $371.35
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D) $473.35
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, E) $380.45
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
6) If you deposit $500 into a certificate of deposit earning 3.8 percent, what would be your earnings
after 12 months?
6)
A) $538.00
B) $500.00
C) $16.50
D) $21.50
E) $19.00
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
7) Randy Hill wants to retire in 25 years with $1,500,000. If he can earn 10 percent per year on his
investments, how much does he need to deposit each year to reach his goal? Use Exhibit 1-B. (Round
your answer to the nearest dollar.)
7)
A) $15,252
B) $30,000
C) $60,000
D) $14,752
E) None of these choices are correct.
St
Question Details Bloom's : Apply Difficulty : 3 Hard
u
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
dy
Page | 4
SH
Kapoor, Les R. Dlabay| TEST BANK
Chapter 1-14| All Chapters Comprising of Verified
Questions & 100% Accurate Answers for the Study
All Answers are at the End of Each Chapter
St
u dy
Page | 1
SH
, Chapter 1: Personal Financial Planning in Action
1) If inflation is expected to be 9.50 percent, how long will it take for prices to double?
1)
A) 5.58 years
B) 6.58 years
C) 17.58 years
D) 11.58 years
E) 7.58 years
Question Details Bloom's : Apply Difficulty : 3 Hard
Learning Objective : 01-01 Identify social and economic influences on financial literacy and personal
Topic : Financial Planning
Topic : Finance and Economics Accessibility : Keyboard Navigation Accessibility : Screen Reader
Compatible Gradable : automatic
2) If a $12,000 investment earns interest of $1,560 in 1 year, what is its rate of return?
2)
A) 100 percent
B) 79 percent
C) 26 percent
D) 58 percent
E) 13 percent
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
3) If a $10,000 investment earns a 3.8 percent annual return, what should its value be after 1 year?
St
3)
u
A) $10,000
dy
Page | 2
SH
,B) $3,900
C) $10,380
D) $10,038
E) $3,800
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
4) If a $10,000 investment earns a 7 percent annual return, what should its value be after 4 years?
Use Exhibit 1-A.
4)
A) $13,110
B) $12,800
C) $10,700
D) $10,035
E) $14,700
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
5) If Melinda Miller estimates that her $350 weekly grocery bill will increase at an annual inflation
rate of 3 percent, what should her weekly grocery bill be in 2 years? Use Exhibit 1-A.
5)
A) $70.00
St
B) $105.00
C) $371.35
u dy
D) $473.35
Page | 3
SH
, E) $380.45
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
6) If you deposit $500 into a certificate of deposit earning 3.8 percent, what would be your earnings
after 12 months?
6)
A) $538.00
B) $500.00
C) $16.50
D) $21.50
E) $19.00
Question Details Bloom's : Apply Difficulty : 3 Hard
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
Learning Objective : 01-03 Calculate time value of money situations to analyze personal financial
dec Topic : Time Value of Money
7) Randy Hill wants to retire in 25 years with $1,500,000. If he can earn 10 percent per year on his
investments, how much does he need to deposit each year to reach his goal? Use Exhibit 1-B. (Round
your answer to the nearest dollar.)
7)
A) $15,252
B) $30,000
C) $60,000
D) $14,752
E) None of these choices are correct.
St
Question Details Bloom's : Apply Difficulty : 3 Hard
u
Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic
dy
Page | 4
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