FHCE 3200 Questions and Answers
"I want to retire with $1,000,000 in the bank" represents what element(s) of a
SMART goal?
a) specific
b) attainable
c) realistic
d) all of the above
✓✓~ d
assume you can earn 1% interest monthly on your savings. what is your APR and
APY?
✓✓~ APR: 12%
APY: 12.68%
How many years it will take to grow $3,000 to $6,000 earning 3% interest?
✓✓~ 72/3 = 23.45 (~24 years)
What interest rate will turn $3,000 into $6,000 over 6 years?
,✓✓~ 72/6 = 12%
Let's say that you receive $1,000 at your college graduation. If you invest the gift and
earn 8% annually, how much will you have in 20 years?
✓✓~ $4,660.96
You are offered the choice of taking $1,000 today or $1,200 in 5 years. Let's say you
can earn 5%.
✓✓~ PV = $940.23
How much will you accumulate in 20 years if you start saving $1,000 every year and
earn 9% on your savings?
✓✓~ FVA = $51,160.11
Imagine that you have just received a large inheritance with the following choice: (1)
take a lump sum of $1,000,000 today or (2) receive $75,000 per year for the next 20
years. The interest rate is 5%.
✓✓~ PVA = $934,665
Amy has $3,000 saved to buy a new car. If she can earn a 7% rate of return for 3
years, how much will she have (approximately) at the end of the 3 years?
, a. $3,210
b. $3,630
c. $3,675
d. $3,884
✓✓~ c
Which of the following is an example of a SMART goal?
a) Retiring at age 65 with enough money to live comfortably
b) Purchasing a new 65-foot sailboat in 3 years
c) Starting a business in a few years that will generate $300,000 in net sales
d) Saving $75,000 for the down payment on a home that will be purchased in 4 years
✓✓~ d
Burt makes $3,300 per month.
He pays $800 in taxes, $700 in rent, $450 on food, $225 for a car payment, $150 in
gas and maintenance, and $700 in entertainment every month.
What is Burt's surplus or deficit?
a. $0
"I want to retire with $1,000,000 in the bank" represents what element(s) of a
SMART goal?
a) specific
b) attainable
c) realistic
d) all of the above
✓✓~ d
assume you can earn 1% interest monthly on your savings. what is your APR and
APY?
✓✓~ APR: 12%
APY: 12.68%
How many years it will take to grow $3,000 to $6,000 earning 3% interest?
✓✓~ 72/3 = 23.45 (~24 years)
What interest rate will turn $3,000 into $6,000 over 6 years?
,✓✓~ 72/6 = 12%
Let's say that you receive $1,000 at your college graduation. If you invest the gift and
earn 8% annually, how much will you have in 20 years?
✓✓~ $4,660.96
You are offered the choice of taking $1,000 today or $1,200 in 5 years. Let's say you
can earn 5%.
✓✓~ PV = $940.23
How much will you accumulate in 20 years if you start saving $1,000 every year and
earn 9% on your savings?
✓✓~ FVA = $51,160.11
Imagine that you have just received a large inheritance with the following choice: (1)
take a lump sum of $1,000,000 today or (2) receive $75,000 per year for the next 20
years. The interest rate is 5%.
✓✓~ PVA = $934,665
Amy has $3,000 saved to buy a new car. If she can earn a 7% rate of return for 3
years, how much will she have (approximately) at the end of the 3 years?
, a. $3,210
b. $3,630
c. $3,675
d. $3,884
✓✓~ c
Which of the following is an example of a SMART goal?
a) Retiring at age 65 with enough money to live comfortably
b) Purchasing a new 65-foot sailboat in 3 years
c) Starting a business in a few years that will generate $300,000 in net sales
d) Saving $75,000 for the down payment on a home that will be purchased in 4 years
✓✓~ d
Burt makes $3,300 per month.
He pays $800 in taxes, $700 in rent, $450 on food, $225 for a car payment, $150 in
gas and maintenance, and $700 in entertainment every month.
What is Burt's surplus or deficit?
a. $0
