12/18/24, 7:50 PM CRPC EXAM ACTUAL EXAM 180 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSW…
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CORRECT DETAILED ANSWERS WITH
RATIONALES (VERIFIED ANSWERS) |ALREADY
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,12/18/24, 7:50 PM CRPC EXAM ACTUAL EXAM 180 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSW…
Mary Goodwin's financial Assets = $263,000; liabilities = $141,000, so net worth is
situation is as follows: $122,000. Taxes and auto note payments appear on
Cash/cash the cash flow statement. 1-3
equivalents$15,000
Short-term debts$8,000
Long-term debts$133,000
Tax expense $7,000
Auto note payments
$4,000
Invested assets $60,000
Use assets $188,000
What is her net worth?
Salaries$70,000 Income = $70,000 + $1,100 + $2,100 = $73,200.
Auto payments$5,000 Expenses = $5,000 + $3,800 + $8,000 + $3,500 +
Insurance $14,000 + $13,000 + $9,000 + $8,400 + $5,800 =
payments$3,800 $70,500, so there is a surplus of $2,700. The checking
Food$8,000 account and credit card balances would be on the
Credit card statement of financial position.
balance$10,000 LO 1-3
Dividends$1,100
Utilities$3,500
Mortgage
payments$14,000
Taxes$13,000
Clothing$9,000
Interest income$2,100
Checking account$4,000
Vacations$8,400
Donations$5,800
What is the cash flow
surplus or (deficit) for Bill?
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,12/18/24, 7:50 PM CRPC EXAM ACTUAL EXAM 180 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSW…
Income replacement percentages are typically much
higher for those with lower preretirement incomes.
Income replacement percentages vary between low-
income and high-income retirees.
Income replacement ratios should not be used as the
only basis for planning.
correct statements about
income replacement
Income replacement ratios are useful for younger
percentages
clients as a guide to their long-range planning and
investing.
The inverse of Option I is true. Those with a lower
preretirement income typically need a much higher
income replacement percentage in retirement.
LO 1-4
If Tom and Jenny want to Set your calculator to the "End" mode and "1 P/Yr."
save a fixed amount Inputs: FV = 2000000, I/YR = 7, N = 25, PV = 0, then
annually to accumulate $2 PMT = $31,621
million by their retirement
date in 25 years (rather 1-4
than an amount that grows
with inflation each year),
what level annual end-of-
year savings amount will
they need to deposit each
year, assuming their
savings earn 7% annually?
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, 12/18/24, 7:50 PM CRPC EXAM ACTUAL EXAM 180 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSW…
Bill and Lisa Hahn have The monthly retirement income need is not specified
determined that they will as "today's dollars," and no inflation rate specified;
need a monthly income of therefore, it must be assumed that the $2,500 net
$6,000 during retirement. monthly income need represents retirement dollars,
They expect to receive and the retirement period income stream is level. To
Social Security retirement calculate the lump sum needed at the beginning of
benefits amounting to retirement, discount the stream of monthly income
$3,500 per month at the payments at the investment return rate:
beginning of each month. 10BII+ PVAD calculation:
Over the 12 remaining Set calculator on BEG and 12 periods per year, then
years of their input the following:
preretirement period, they 2,500 [PMT]
expect to generate an 25 [SHIFT] [N]
average annual after-tax 6 [I/YR]
investment return of 8%; 0 [FV]
during their 25-year Solve for PV = $389,957
retirement period, they LO 1-4
want to assume a 6%
annual after-tax
investment return
compounded monthly.
They want to start their
monthly retirement
withdrawals on the first
day they retire.
What is the lump sum
needed at the beginning
of retirement to fund this
income stream?
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CRPC EXAM ACTUAL EXAM 180 QUESTIONS AND
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RATIONALES (VERIFIED ANSWERS) |ALREADY
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Practice questions for this set
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Studied 7 terms
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Terms in this set (179)
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,12/18/24, 7:50 PM CRPC EXAM ACTUAL EXAM 180 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSW…
Mary Goodwin's financial Assets = $263,000; liabilities = $141,000, so net worth is
situation is as follows: $122,000. Taxes and auto note payments appear on
Cash/cash the cash flow statement. 1-3
equivalents$15,000
Short-term debts$8,000
Long-term debts$133,000
Tax expense $7,000
Auto note payments
$4,000
Invested assets $60,000
Use assets $188,000
What is her net worth?
Salaries$70,000 Income = $70,000 + $1,100 + $2,100 = $73,200.
Auto payments$5,000 Expenses = $5,000 + $3,800 + $8,000 + $3,500 +
Insurance $14,000 + $13,000 + $9,000 + $8,400 + $5,800 =
payments$3,800 $70,500, so there is a surplus of $2,700. The checking
Food$8,000 account and credit card balances would be on the
Credit card statement of financial position.
balance$10,000 LO 1-3
Dividends$1,100
Utilities$3,500
Mortgage
payments$14,000
Taxes$13,000
Clothing$9,000
Interest income$2,100
Checking account$4,000
Vacations$8,400
Donations$5,800
What is the cash flow
surplus or (deficit) for Bill?
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,12/18/24, 7:50 PM CRPC EXAM ACTUAL EXAM 180 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSW…
Income replacement percentages are typically much
higher for those with lower preretirement incomes.
Income replacement percentages vary between low-
income and high-income retirees.
Income replacement ratios should not be used as the
only basis for planning.
correct statements about
income replacement
Income replacement ratios are useful for younger
percentages
clients as a guide to their long-range planning and
investing.
The inverse of Option I is true. Those with a lower
preretirement income typically need a much higher
income replacement percentage in retirement.
LO 1-4
If Tom and Jenny want to Set your calculator to the "End" mode and "1 P/Yr."
save a fixed amount Inputs: FV = 2000000, I/YR = 7, N = 25, PV = 0, then
annually to accumulate $2 PMT = $31,621
million by their retirement
date in 25 years (rather 1-4
than an amount that grows
with inflation each year),
what level annual end-of-
year savings amount will
they need to deposit each
year, assuming their
savings earn 7% annually?
https://quizlet.com/987085830/crpc-exam-actual-exam-180-questions-and-correct-detailed-answers-with-rationales-verified-answers-already-graded-… 3/84
, 12/18/24, 7:50 PM CRPC EXAM ACTUAL EXAM 180 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSW…
Bill and Lisa Hahn have The monthly retirement income need is not specified
determined that they will as "today's dollars," and no inflation rate specified;
need a monthly income of therefore, it must be assumed that the $2,500 net
$6,000 during retirement. monthly income need represents retirement dollars,
They expect to receive and the retirement period income stream is level. To
Social Security retirement calculate the lump sum needed at the beginning of
benefits amounting to retirement, discount the stream of monthly income
$3,500 per month at the payments at the investment return rate:
beginning of each month. 10BII+ PVAD calculation:
Over the 12 remaining Set calculator on BEG and 12 periods per year, then
years of their input the following:
preretirement period, they 2,500 [PMT]
expect to generate an 25 [SHIFT] [N]
average annual after-tax 6 [I/YR]
investment return of 8%; 0 [FV]
during their 25-year Solve for PV = $389,957
retirement period, they LO 1-4
want to assume a 6%
annual after-tax
investment return
compounded monthly.
They want to start their
monthly retirement
withdrawals on the first
day they retire.
What is the lump sum
needed at the beginning
of retirement to fund this
income stream?
https://quizlet.com/987085830/crpc-exam-actual-exam-180-questions-and-correct-detailed-answers-with-rationales-verified-answers-already-graded-… 4/84
