CRPC Practice Exam latest update 2024/2025(Q & A)

CRPC Practice Exam latest update
2024/2025(Q & A)


1. Richard wants to have anannualretirement income of $100,000 (payable at the r
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beginning of each year) protected against 3% inflation.
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Assuminga7%after-taxrateofreturnandaretirementperiodof30years,how much r
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money does Richard need in order to meet his goal?
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Explain how you need to input this on the calculator and why. r
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ANS:Step One - Set the calculator to BEGIN.
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StepTwo-Calculatetheinflationadjustedrateofreturn(OneplustheRateofReturn divided
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by One plus the interest rate, minus one, multiplied by 100 = the inflation adjusted rate of
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return) Put this number in the I/YR
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StepThree - 100,000 goes in as a PMT Step
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r r Four - 30 goes in as N
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Step Five -Press PV r
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Richard needs $1,822,042.88 in today's dollars to meet his needs. r
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2. How do you calculate the inflation-adjusted rate of return? r
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ANS:1 plus the Rate of Return r
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Divided by r r




1plusthe interestrate minus
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multiplied by 100 r
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3. Tomhas beenpromised a streamof $40,000 annual payments at the end of each
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year for 25 years.The present value of these payments discounted at a rateof5%
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iswhichoneofthefollowingamounts?
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ANS:StepOne-Theproblemsays END in it so you have to set your calculator to the END
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mode.
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Step two - Enter the $40000 as a PMT Step
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r r Three - Enter 25 as the N.
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