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CFP Practice Exam 1 Questions and
Answers 100% Solved
According to CFP Board's Code of Ethics and Standards of conduct, A
CFP Professional may represent the CFP Professionals or the CFP
Professional's Firm's compensation method as "fee only" only under which
set of circumstances? - ✔✔The CFP Professional and the CFP
professional's firm receives no sales related compensation in connection
with any professional services the CFP professional or the CFP
Professional's firm provides to clients.
Henry wants to have $1m in investment assets in his taxable account when
he retires in 10 years. Currently he has $100K invested in his account. He
anticipates this account will appreciate at an annual rate of 10% before
taxes or 8% after taxes. How much must he invest at the end of each
month to achieve his goal? - ✔✔Answer: $4,253.82
Keystrokes
N 120
, ©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
I: 8/12
PV: -$100K
FV: $1,000,000
PMT:
Sydney is deciding whether to buy or lease a vehicle for her personal use
only. If Sydney's interest rate is 8% per year, which of the following options
would be the least expensive way to acquire the new car?
1. She should buy the car w/ no down payment and $700 monthly
payments for 5 years.
2. She should buy the car with $6,000 down payment and $600 Monthly
payments for 5 years.
3. She should lease the car for $2,000 down, $500 monthly payments for 5
years, and a $10,000 payment at end of lease.
, ©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
4. She should lease the car for $4,000 down, $550 monthly payments for 5
years, and $5,000 payment at the end of the lease. - ✔✔Answer: 3 is the
best choice
Calculation:
End Mode
N: 60
I: 8/12
PMT: $500
FV: $10,000
Solve for PV which equals $31,371.
The total present value for this option is $31,371 + $2,000 down payment =
$33,371
which of the following strategies will most likely increase a client's cash
flow?
A. refinance the client's 2 year old 30 year mortgage at 7% with a 15 year
mortgage at 6.5%
CFP Practice Exam 1 Questions and
Answers 100% Solved
According to CFP Board's Code of Ethics and Standards of conduct, A
CFP Professional may represent the CFP Professionals or the CFP
Professional's Firm's compensation method as "fee only" only under which
set of circumstances? - ✔✔The CFP Professional and the CFP
professional's firm receives no sales related compensation in connection
with any professional services the CFP professional or the CFP
Professional's firm provides to clients.
Henry wants to have $1m in investment assets in his taxable account when
he retires in 10 years. Currently he has $100K invested in his account. He
anticipates this account will appreciate at an annual rate of 10% before
taxes or 8% after taxes. How much must he invest at the end of each
month to achieve his goal? - ✔✔Answer: $4,253.82
Keystrokes
N 120
, ©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
I: 8/12
PV: -$100K
FV: $1,000,000
PMT:
Sydney is deciding whether to buy or lease a vehicle for her personal use
only. If Sydney's interest rate is 8% per year, which of the following options
would be the least expensive way to acquire the new car?
1. She should buy the car w/ no down payment and $700 monthly
payments for 5 years.
2. She should buy the car with $6,000 down payment and $600 Monthly
payments for 5 years.
3. She should lease the car for $2,000 down, $500 monthly payments for 5
years, and a $10,000 payment at end of lease.
, ©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
4. She should lease the car for $4,000 down, $550 monthly payments for 5
years, and $5,000 payment at the end of the lease. - ✔✔Answer: 3 is the
best choice
Calculation:
End Mode
N: 60
I: 8/12
PMT: $500
FV: $10,000
Solve for PV which equals $31,371.
The total present value for this option is $31,371 + $2,000 down payment =
$33,371
which of the following strategies will most likely increase a client's cash
flow?
A. refinance the client's 2 year old 30 year mortgage at 7% with a 15 year
mortgage at 6.5%
