FINA 2330 - EXAM 3 QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2025/2026
Assuming an 8% annual return, compounded monthly, a 30 year old would need to save _______
a month to raise $1,000,000 by age 70. - Answers about $286
When using the Rule of 72, you _________ 72 by the __________ on the investment. - Answers
divide, annual interest rate
According to Edelman, the cost of raising a child through age 18 typically totals to be between
$35,000 and $45,000. - Answers False
Financial experts generally agree that the most common reason people fail financially is: -
Answers procrastination
Which of these was not an obstacle to building wealth, according to Edelman? - Answers
income level.
The Rule of 72 allows you to predict the number of years it will take to double your money. -
Answers True
Compound interest is the process of bundling your investments in order to create a portfolio of
various returns that can be added together every year. - Answers False
In the United States, the history of income taxation can be traced back to Declaration of
Independence. - Answers False
The Federal Income Tax system is essentially progressive, meaning the more you earn, the
greater your income tax rate. - Answers True
According to Edelman, you need a financial plan to protect against: - Answers all of these.
lawsuits.
illness.
injury.
FDIC stands for __________________________. - Answers Federal Deposit Insurance Corporation
When investing capital in a business, individuals always expect a return of cash on a regular
basis. - Answers False
Investments offering ownership are also called __________ investments. - Answers Equity
The current FDIC limit is $150,000. - Answers False
Assuming an 8% annual return, compounded monthly, a 30 year old would need to save _______
a month to raise $1,000,000 by age 70. - Answers about $286
When using the Rule of 72, you _________ 72 by the __________ on the investment. - Answers
divide, annual interest rate
According to Edelman, the cost of raising a child through age 18 typically totals to be between
$35,000 and $45,000. - Answers False
Financial experts generally agree that the most common reason people fail financially is: -
Answers procrastination
Which of these was not an obstacle to building wealth, according to Edelman? - Answers
income level.
The Rule of 72 allows you to predict the number of years it will take to double your money. -
Answers True
Compound interest is the process of bundling your investments in order to create a portfolio of
various returns that can be added together every year. - Answers False
In the United States, the history of income taxation can be traced back to Declaration of
Independence. - Answers False
The Federal Income Tax system is essentially progressive, meaning the more you earn, the
greater your income tax rate. - Answers True
According to Edelman, you need a financial plan to protect against: - Answers all of these.
lawsuits.
illness.
injury.
FDIC stands for __________________________. - Answers Federal Deposit Insurance Corporation
When investing capital in a business, individuals always expect a return of cash on a regular
basis. - Answers False
Investments offering ownership are also called __________ investments. - Answers Equity
The current FDIC limit is $150,000. - Answers False
