3/27/25, 8:55 CRPC Module Quizzes |
AM
CRPC MODULE QUIZZES AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED LATEST UPDATE
Terms in this set (270)
Prior to providing retirement planning identifying specific funds in which to invest.
services, the scope of the services
offered should be mutually defined
by the planner and client. This initial
discussion should not include which
one of the following topics?
The client's ability to purchase insurance or investments is reviewed in step
The process of data gathering is the
three of the planning process, in which an analysis and evaluation of
second step in the retirement planning
financial status takes
process. All of the following are
place. During the data gathering process the planner should identify the client's
examples of data to be gathered
retirement account balances and income sources and amounts, and
except
determine his or her risk tolerance.
Frank and Brenda Elliot own $20,000 Net worth is defined as assets minus liabilities. The Elliots have $410,000 in assets and
in cash equivalents, $100,000 in $153,500 in liabilities. Their net worth is $256,500.
invested assets, and $290,000 in use
assets. The Elliots have an
outstanding mortgage of
$150,000 and owe $3,500 in
credit card debt. What is the
Elliots' net worth?
Andy and Lori Cookston had a Net cash flow is calculated by subtracting total cash outflows from total cash
combined gross salary of $85,000 inflows.
this year. Other cash inflows Total cash inflows of $94,800 minus total cash outflows of $91,000 equals
amounted to $9,800. Their net cash flow of $3,800.
fixed cash outflows were $26,300,
and their variable cash outflows were
$64,700. What was the Cookstons'
net cash flow for the
year?
College funding is considered a lifestyle goal. Foundation goals are those that
All of the following are
contribute to more basic living needs such as food, insurance, and
considered foundation
emergency funds. The coverage of risk exposures is also considered a
financial goals EXCEPT
foundation financial goal.
Automobile costs often decrease. Second cars for married couples are less
Which one of the following is an
necessary, and commuting miles are reduced or eliminated for the
incorrect statement regarding
primary vehicle. Eliminating the second car reduces insurance
retirement spending habits?
expenses, license fees, maintenance costs, and taxes.
You have completed all of the Once you have gathered all of the appropriate data needed, the next
activities involved in the data step is to analyze it.
gathering step of the financial planning
process, including
obtaining sufficient quantitative
information and documents. What is
the next step of the process?
With some exceptions, most categories of living expenses (such as
It is anticipated that the transportation, clothing, and housing) decrease during retirement years.
percentage of people who continue Some expenses, such as travel and medical, may increase during
to work after they reach age 65 or retirement years. It is true that Social Security benefits may increase for
1/12
, 3/27/25, 8:55 CRPC Module Quizzes |
AM
66 will increase in the people who work past their Social Security full retirement age.
future. All of the following are Additionally, wages and salaries earned during retirement will
reasons for this increase EXCEPT obviously increase retirement income and longer life spans will result in
a need for more retirement income.
When a client's funds are insufficient to Increasing gifts to children would exacerbate the problem. If client
attain retirement goals, it is retirement funds are insufficient to meet goals, gifts to children should
appropriate for the planner to decrease. All other options will increase available resources. Delaying
suggest all of the following EXCEPT retirement will also decrease the need for
retirement income.
To calculate retirement needs, Although political events have effects on investment returns and
planners must make assumptions inflation, it is nearly impossible to consistently predict events of such a
regarding future random nature. Investment returns, inflation rates, and tax rates must
trends. These assumptions include all of be assumed when projecting retirement income needs.
the following EXCEPT
During retirement, John wants to receive You do need to set the calculator in END mode and solve for ordinary
$50,000 at the end of each year for annuity. If this were asking you to solve for an annuity due (where
the rest of his life. To calculate the payments occur at the beginning of the period), you would set
amount that he will need to save, calculator for BEG.
you need to solve for
Mary wants to retire the first of next To solve this problem, you would need to solve for annuity due,
year. She wants to receive annual and set the calculator to the begin mode.
retirement income payments on the
first day of each year, starting when
she retires. To solve the amount of
capital required to provide her the
income she wants, you need to solve
for
See the Financial Calculator videos on the LMS. As stated in the syllabus,
the CRPC® course uses financial calculator videos 1-1 through 1-12 except
for 1-7 on loans. Then calculator videos 1-17 and 1-18 concern bonds. Bond
calculations are covered in Module 2. Start by setting up the calculator.
Turn the calculator on and clear the
John wants to have $1 million in his
memory. Set the number of compounding periods per year; the number
retirement fund when he retires in 25
of decimals shown to be four, and be in the proper payment mode
years. Assuming that he earns 11%
(begin or end mode).
and inflation is at 3%, how much does
Keystrokes:
John need to save on a level basis at
1000000, FV
the end of each year?
Shift, N. For TI BA II+, 25, 2nd, xP/Y, N. The result should be
"25.0000." 11, I/YR. For the TI BA II+, 11, I/Y.
PMT Solution: -$8,740. For the TI BA II+, CPT, PMT
Notice that the inflation rate does not come into play here because
the question notes that John will be saving on a level basis. Also, the
goal is not expressed in today's dollars. The goal is simply to have
$1 million in the account at retirement
Start by setting up the calculator. See the Financial Calculator videos on the LMS.
Turn it on and clear the memory. Set the number of compounding periods; the
number of decimals shown to four, and be in the proper payment mode
Mary wants to have a retirement income
of (begin or end mode).
$60,000 protected against 3% Because the problem indicates that Mary wants her income to be protected
inflation. She assumes that she will against inflation, you will use the inflation-adjusted rate of 5.8252%
earn 9%, and wants to have the [((1.09/1.03) - 1) x 100 = 5.8252].
income for 30 years. How much Keystrokes:
capital will be required to provide Mary 60000, PMT
this much income at the first of each 5.8252, I/YR
year? (Set your calculator for four 30, Shift, N. For the TI BA II+, 30, 2ND, xP/Y, N The result should be
"30.0000." PV Solution: -$890,589.37 or $890,593 For the TI BA II+,
2/12
AM
CRPC MODULE QUIZZES AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED LATEST UPDATE
Terms in this set (270)
Prior to providing retirement planning identifying specific funds in which to invest.
services, the scope of the services
offered should be mutually defined
by the planner and client. This initial
discussion should not include which
one of the following topics?
The client's ability to purchase insurance or investments is reviewed in step
The process of data gathering is the
three of the planning process, in which an analysis and evaluation of
second step in the retirement planning
financial status takes
process. All of the following are
place. During the data gathering process the planner should identify the client's
examples of data to be gathered
retirement account balances and income sources and amounts, and
except
determine his or her risk tolerance.
Frank and Brenda Elliot own $20,000 Net worth is defined as assets minus liabilities. The Elliots have $410,000 in assets and
in cash equivalents, $100,000 in $153,500 in liabilities. Their net worth is $256,500.
invested assets, and $290,000 in use
assets. The Elliots have an
outstanding mortgage of
$150,000 and owe $3,500 in
credit card debt. What is the
Elliots' net worth?
Andy and Lori Cookston had a Net cash flow is calculated by subtracting total cash outflows from total cash
combined gross salary of $85,000 inflows.
this year. Other cash inflows Total cash inflows of $94,800 minus total cash outflows of $91,000 equals
amounted to $9,800. Their net cash flow of $3,800.
fixed cash outflows were $26,300,
and their variable cash outflows were
$64,700. What was the Cookstons'
net cash flow for the
year?
College funding is considered a lifestyle goal. Foundation goals are those that
All of the following are
contribute to more basic living needs such as food, insurance, and
considered foundation
emergency funds. The coverage of risk exposures is also considered a
financial goals EXCEPT
foundation financial goal.
Automobile costs often decrease. Second cars for married couples are less
Which one of the following is an
necessary, and commuting miles are reduced or eliminated for the
incorrect statement regarding
primary vehicle. Eliminating the second car reduces insurance
retirement spending habits?
expenses, license fees, maintenance costs, and taxes.
You have completed all of the Once you have gathered all of the appropriate data needed, the next
activities involved in the data step is to analyze it.
gathering step of the financial planning
process, including
obtaining sufficient quantitative
information and documents. What is
the next step of the process?
With some exceptions, most categories of living expenses (such as
It is anticipated that the transportation, clothing, and housing) decrease during retirement years.
percentage of people who continue Some expenses, such as travel and medical, may increase during
to work after they reach age 65 or retirement years. It is true that Social Security benefits may increase for
1/12
, 3/27/25, 8:55 CRPC Module Quizzes |
AM
66 will increase in the people who work past their Social Security full retirement age.
future. All of the following are Additionally, wages and salaries earned during retirement will
reasons for this increase EXCEPT obviously increase retirement income and longer life spans will result in
a need for more retirement income.
When a client's funds are insufficient to Increasing gifts to children would exacerbate the problem. If client
attain retirement goals, it is retirement funds are insufficient to meet goals, gifts to children should
appropriate for the planner to decrease. All other options will increase available resources. Delaying
suggest all of the following EXCEPT retirement will also decrease the need for
retirement income.
To calculate retirement needs, Although political events have effects on investment returns and
planners must make assumptions inflation, it is nearly impossible to consistently predict events of such a
regarding future random nature. Investment returns, inflation rates, and tax rates must
trends. These assumptions include all of be assumed when projecting retirement income needs.
the following EXCEPT
During retirement, John wants to receive You do need to set the calculator in END mode and solve for ordinary
$50,000 at the end of each year for annuity. If this were asking you to solve for an annuity due (where
the rest of his life. To calculate the payments occur at the beginning of the period), you would set
amount that he will need to save, calculator for BEG.
you need to solve for
Mary wants to retire the first of next To solve this problem, you would need to solve for annuity due,
year. She wants to receive annual and set the calculator to the begin mode.
retirement income payments on the
first day of each year, starting when
she retires. To solve the amount of
capital required to provide her the
income she wants, you need to solve
for
See the Financial Calculator videos on the LMS. As stated in the syllabus,
the CRPC® course uses financial calculator videos 1-1 through 1-12 except
for 1-7 on loans. Then calculator videos 1-17 and 1-18 concern bonds. Bond
calculations are covered in Module 2. Start by setting up the calculator.
Turn the calculator on and clear the
John wants to have $1 million in his
memory. Set the number of compounding periods per year; the number
retirement fund when he retires in 25
of decimals shown to be four, and be in the proper payment mode
years. Assuming that he earns 11%
(begin or end mode).
and inflation is at 3%, how much does
Keystrokes:
John need to save on a level basis at
1000000, FV
the end of each year?
Shift, N. For TI BA II+, 25, 2nd, xP/Y, N. The result should be
"25.0000." 11, I/YR. For the TI BA II+, 11, I/Y.
PMT Solution: -$8,740. For the TI BA II+, CPT, PMT
Notice that the inflation rate does not come into play here because
the question notes that John will be saving on a level basis. Also, the
goal is not expressed in today's dollars. The goal is simply to have
$1 million in the account at retirement
Start by setting up the calculator. See the Financial Calculator videos on the LMS.
Turn it on and clear the memory. Set the number of compounding periods; the
number of decimals shown to four, and be in the proper payment mode
Mary wants to have a retirement income
of (begin or end mode).
$60,000 protected against 3% Because the problem indicates that Mary wants her income to be protected
inflation. She assumes that she will against inflation, you will use the inflation-adjusted rate of 5.8252%
earn 9%, and wants to have the [((1.09/1.03) - 1) x 100 = 5.8252].
income for 30 years. How much Keystrokes:
capital will be required to provide Mary 60000, PMT
this much income at the first of each 5.8252, I/YR
year? (Set your calculator for four 30, Shift, N. For the TI BA II+, 30, 2ND, xP/Y, N The result should be
"30.0000." PV Solution: -$890,589.37 or $890,593 For the TI BA II+,
2/12
