UGBA 135 FINAL PAPER 2026 COMPLETE
QUESTIONS AND CORRECT ANSWERS
GRADED A+
●● Present value (PV).
Answer: - value of money offered today
PV = FV / (1 + r)^T
●● PV of annuity.
Answer: C = periodic cash flow
N = number of periods
r = interest rate used to value annuity
●● Future value FV.
Answer: - future value of money after investing
FV = PV (1 + r) ^T
●● Rule of 72.
Answer: - calculateS time needed to double your money, or interest rate
needed to double your money
t = 72 / r (%)
,●● Simple interest.
Answer: - Interest calculated using only the original amount of money
(the principal), interest amount stays the same every period
●● Compound interest.
Answer: - interest on top of your interest, calculated using original
money plus any interest already earned
●● SMART goals.
Answer: Specific
Measurable
Achievable
Relevant
Time bound
●● Budgeting tips.
Answer: - Know where your money is going
- Pay yourself first (put into retirement accounts and remaning to
checking
- Make saving automatic
-Increase savings rate
- Save half spend half approach
, ●● How to save.
Answer: 3 categories
1. Must haves - at or below 50% of after tax income
2. Savings - 20% goal of after tax income
3. Wants - 30% of after tax income on wants
●● Account.
Answer: - agreement between you and a business (bank, brokerage,
credit union), A record of transactions
●● Checking account.
Answer: - bank account used for everyday spending, workhorse account
- Only enough to pay bills and provide a buffer
- Used to deposit and withdraw money and pay for things using a debit
card
Monthly fee or keep a minimum amount or be a student
- Link to your high yield savings account and brokerage accounts
- Balance is how much money you have
●● Debit card.
Answer: - similar to cash, instantly deducts from your account and
usually an ATM card
- No annual fees, no impact to credit score, no rewards
QUESTIONS AND CORRECT ANSWERS
GRADED A+
●● Present value (PV).
Answer: - value of money offered today
PV = FV / (1 + r)^T
●● PV of annuity.
Answer: C = periodic cash flow
N = number of periods
r = interest rate used to value annuity
●● Future value FV.
Answer: - future value of money after investing
FV = PV (1 + r) ^T
●● Rule of 72.
Answer: - calculateS time needed to double your money, or interest rate
needed to double your money
t = 72 / r (%)
,●● Simple interest.
Answer: - Interest calculated using only the original amount of money
(the principal), interest amount stays the same every period
●● Compound interest.
Answer: - interest on top of your interest, calculated using original
money plus any interest already earned
●● SMART goals.
Answer: Specific
Measurable
Achievable
Relevant
Time bound
●● Budgeting tips.
Answer: - Know where your money is going
- Pay yourself first (put into retirement accounts and remaning to
checking
- Make saving automatic
-Increase savings rate
- Save half spend half approach
, ●● How to save.
Answer: 3 categories
1. Must haves - at or below 50% of after tax income
2. Savings - 20% goal of after tax income
3. Wants - 30% of after tax income on wants
●● Account.
Answer: - agreement between you and a business (bank, brokerage,
credit union), A record of transactions
●● Checking account.
Answer: - bank account used for everyday spending, workhorse account
- Only enough to pay bills and provide a buffer
- Used to deposit and withdraw money and pay for things using a debit
card
Monthly fee or keep a minimum amount or be a student
- Link to your high yield savings account and brokerage accounts
- Balance is how much money you have
●● Debit card.
Answer: - similar to cash, instantly deducts from your account and
usually an ATM card
- No annual fees, no impact to credit score, no rewards
