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FINA200 (JMSB exams) PERSONAL FINANCE - Covering Chapters 1 -7 Concordia University
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FINA200 (JMSB exams) PERSONAL FINANCE - Covering Chapters 1 -7 Concordia University
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FINA200 (JMSB exams) PERSONAL FINANCE - Covering Chapters 1 -7 ConcordiaUniversity
Summer , Section EC1 Case
Study due June 3rd, 2022
Covering Chapters 1 -7
For marking purposes only:
Multiple Choice Case A Case B Total
/10 /8 /7 /25
Page 1 of 12
, Section I: 10 Multiple Choice Questions (1 mark each – total of 10 marks)
Please highlight and bold your response.
Question 1
Which component of a financial plan is influenced by your life stage?
a) Budgeting and tax planning
b) Protecting your assets and income
c) Investing your money
d) Managing your financial resources
Question 2
Barbara’s combined federal and provincial marginal tax rate is 24.5%. If she invests
$2,000 every year for 5 years, how much after-tax income will she earn on her
investment if interest is paid at a rate of 3.5%, compounded quarterly? Barbara pays
quarterly tax instalments due to her high investment income. Hint: Transform the
interest rate to an after-tax rate by multiplying by (1 – tax rate).
a) $829.71
b) $734.84
c) $580.80
d) $548.20
Question 3
Your son just turned 10 years old. He will need $40,000 at the beginning of each year for
4 years starting on his 19th birthday to attend university. You also wish to gift him
$50,000 upon graduation. How much must you put aside every month, at the beginning
of the month, starting today, to fund his education and gift, if you foresee earning a
return of 5%, compounded monthly? Round to the nearest dollar.
a) $1,301
b) $1,327
c) $1,388
d) $1,394
Page 2 of 12
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