Practice Test Answers

What is a disadvantage of the whole life insurance option?

An individual's PIA is $2,800 If they start receiving benefits at age 62+2 months, how much will they receive monthly?

What percentage of Hispanic individuals consider their retirement savings to be on track?

Based on the table, which group most needs improved retirement planning?

Which factor is a disadvantage of an annuity?

Which retirement income source provides a predictable stream of earnings, usually from bonds or savings accounts?

The appraised value of an investment property is $⁢302,580 One investment plan suggests a different plan when an estimated value is greater than 22% above or below the appraised value. Let x be the estimated value at any time in the future. Which absolute value inequality represents the constraints of the plan?

Luz, who is 45 years old, is deciding between two term life insurance policies. Both offer a $350,000 death benefit, but the premiums differ based on age and term length. Option 1: 15-year term life policy Monthly premium: $40 Coverage: 15 years Death benefit: $350,000 Option 2: 25-year term life policy Monthly premium: $60 Coverage: 25 years Death benefit: $350,000 What is the total cost for each option?

A stock is trading for $⁢59.60 A broker writes an order that the stock be sold if it goes up or down by 9% of the current price. Let x be the price of the stock at any point in the future. Write an absolute value equation to represent the requirements. Enter your answer in the box.

Deangelo wants to retire with an income of 50% of his current $⁢120,000 salary. Using the 4 percent rule, how much does he need to save by retirement?

An employee with a salary of $⁢50,000 contributes 6% of their salary to a 401(k) retirement plan. The employer matches 75% of the employee's contribution, up to 5% of the employee's salary. How much will the employer contribute annually?

Keyla earns $⁢50,000 annually. Her company matches 100% of her 401(k) contributions up to 5% of her salary. The vesting schedule is graded at 25% per year over 4 years. Keyla contributes 5% of her salary. After 4 years, how much will be vested?

Haley is nearing retirement and has significant savings in a traditional IRA. They are considering rolling over their savings to another plan to avoid mandatory minimum distributions (RMDs). Which plan should Haley consider to avoid RMDs?

A real estate property is valued at $⁢98,738 The owner will consider other options if the value increases or decreases by more than 18% What part of the solution set represents the decreased value at which the owner will consider other options? Enter your answer in the box.

Sherry has $800,000 in her 403(b) account and wants to withdraw money over 25 years. She expects an annual interest rate of 3.5% What is Sherry's estimated monthly payout? Use the formula P=P⁢V⋅(r)/(1−(1+r)^−n)

The rent for an investment property is $⁢1,220 per month. The property manager charges a monthly fee of $⁢115 In one period, the investor earns $⁢16,575 Write an equation to represent the investor’s revenue in terms of the number of months, x Enter your answer in the box.