Topic Test Answers

Liz owns stock in Nar Heating/Cooling and Cilla Shipping. She owns 120 more shares of Cilla Shipping than she does of Nar Heating/Cooling. Nar Heating/Cooling pays a yearly dividend of $5.78 per share, and Cilla Shipping pays a yearly dividend of $4.15 per share. If Liz receives $1630.02 in dividends annually, how many shares of Nar Heating/Cooling does she own?a.196 sharesb.114 sharesc.348 sharesd.282 shares

Rank the following kinds of bonds in order from least secure to most secure: Municipal, Corporate, Treasurya.Corporate, Municipal, Treasuryb.Treasury, Corporate, Municipalc.Treasury, Municipal, Corporated.Municipal, Corporate, Treasury

Mark has invested in Evu Confectioners. He owns 220 shares of stock in Evu Confectioners, with each share costing him $14.79 apiece but paying a yearly dividend of $2.03. Mark also owns three par value $500 bonds from Evu Confectioners, each of which had a market value of 93.630 and which pay 8.8% interest. If Mark’s broker charges a commission of $55 per ten shares of stock bought or sold and a commission of 3% of the market value of each bond bought or sold, which aspect of Mark’s investment in Evu Confectioners has the greater percent yield, and how much greater is it?a.The stocks have a yield 4.33 percentage points greater than that of the bonds.b.The stocks have a yield 0.88 percentage points greater than that of the bonds.c.The bonds have a yield 0.32 percentage points greater than that of the stocks.d.The bonds have a yield 3.68 percentage points greater than that of the stocks.

Tami would like to withdraw $10,364.10 at the end of each year, for 10 years, from an account paying 2.3% compounded annually. Determine the amount needed in the account for Tami to do this. Round to the nearest cent.a.$115,052.98b.$103,641.00c.$91,651.92d.$93,759.91

In the table below, we are given two annuity plans, A and B, and the amount invested into each plan every month. Given this information, determine which of the two investments is an ordinary annuity, and the amount invested over a 12 month period. a. Investment A is an ordinary annuity with an annual contribution of $1,100 b. Investment A is an ordinary annuity with an annual contribution of $100 c. Investment B is an ordinary annuity with an annual contribution of $1,100 d. Investment B is an ordinary annuity with an annual contribution of $100 Please select the best answer from the choices provided

Consider today’s stock listing for Enam Telecom, shown below.52 wk High52 wk LowSymbolDiv.CloseNet Change122.8664.77ENM3.4599.144.74If the lowest price in the past year occurred 48 days ago, find the approximate average change per day since then.a.$4.74b.$0.72c.$0.49d.$1.34

Rachel bought 1,500 shares of Cawh Consolidated Bank at a price of $24.85 each. As the price climbed, she sold off parts of her holdings. She sold off 250 shares at $28.32 apiece, she sold 800 of her shares at $33.60 apiece, and she sold off the remainder of her shares at $39.94 apiece. If Rachel’s broker charges a commission of $65 per $1,000 of stock bought or sold, how much profit did Rachel make, to the nearest dollar?a.$20,459b.$51,933c.$14,661d.$8,859

Trent is 25 years old and works for a company that matches his 401(k) contribution up to 5%. The interest rate for his 401(k) is 7.3%. If he puts away 10% of his $32,000 salary every year, what would the total of his 401(k) be in 10 years? Round your answer to the nearest cent. a. $67,266.16 b. $72,176.59 c. $33,250.60 d. $35,677.89 Please select the best answer from the choices provided

You purchase a home for $125,000. The value of the property increases by 1.9% every year. After ten years, you decide to sell the home. In the meantime, you have made renovations and improvements to the house which increase its sale value by $48,300. How much will you sell the house for, to the nearest hundred dollars?a.$257,500b.$209,200c.$150,900d.$199,200

Suppose that a family wants to start a college fund for their child. If they can get a rate of 5.2%, compounded monthly, and want the fund to have a value of $55,500 after 20 years, how much should they deposit monthly? Assume an ordinary annuity and round to the nearest cent.a.$131.93b.$2,662.49c.$1,643.30d.$3,446.64

Broker P charges a commission of $8.50 for every ten shares of stock, and Broker Q charges a fee of $65.00 for every thousand dollars bought or sold. If stock in Ergar Appliances costs $18.75 per share and you buy 500 shares, which broker is the better deal, and by how much?a.Broker Q will charge $375.35 less than Broker P.b.Broker Q will charge $160.22 less than Broker P.c.Broker P will charge $184.38 less than Broker Q.d.Broker P will charge $425.00 less than Broker Q.

Five years ago, William bought a twelve-room apartment complex for $340,000, and he plans to sell it today. The real estate market caused William’s complex to increase in value by 1.8% every year. William charges $525 per month to rent a room, and pays $36,500 in building upkeep every year. If William has kept all of his apartments continually rented out since he bought the building, to the nearest hundred dollars, how much profit will he realize once he sells it?a.$195,500b.$227,200c.$226,100d.$245,500

Rochelle invests in 500 shares of stock in the fund shown below.Name of FundNAVOffer PriceHAT Mid-Cap$18.94$19.14Rochelle plans to sell all of her shares when she can profit $6,250. What must the net asset value be in order for Rochelle to sell?a.$12.50b.$31.44c.$31.64d.$100.00

Determine the amount needed such that when it comes time for retirement, an individual can make monthly withdraws in the amount of $2,154 for 30 years from an account paying 5.1% compounded monthly. Round your answer to the nearest cent.a.$396,721.78b.$398,407.85c.$775,440d.$1,833,962.40

Pierce wishes to purchase a municipal bond with a par value of $500 from Chattahoochee County, and he is trying to decide which broker he should employ to purchase the bond. Broker A charges a 3.1% commission on the market value of each bond sold. Broker B charges a flat $24 for each bond sold. If the bond has a market rate of 88.754, which broker will give Pierce the better deal, and by how much?a.Broker B’s commission will be $9.75 less than Broker A’s.b.Broker B’s commission will be $3.51 less than Broker A’s.c.Broker A’s commission will be $13.76 less than Broker B’s.d.Broker A’s commission will be $10.24 less than Broker B’s.

Cassie’s broker charges her a commission of $4.25 for every ten shares of stock bought or sold. Cassie buys 92 shares of Hyren Airlines, 130 of Giaco Household Goods, and 126 of Iwad Records. Hyren Airlines costs $13.70 per share, Giaco Household Goods costs $3.28 per share, and Iwad Records costs $8.06 per share. To the nearest dollar, how much money did Cassie spend in total?a.$3,851b.$2,850c.$2,702d.$2,551

Mark is looking for professional financial assistance. Mark has never invested before and is not quite sure where to start. He knows that he wants to build up investments for future projects such as retirement, but he is not sure how to navigate investment in light of his existing debts. Recommend an appropriate financial professional for Mark. a. Full-service broker b. Discount broker c. Accountant d. Financial planner Please select the best answer from the choices provided

Which of the following retirement plans places a maximum amount that an individual can contribute to the fund in a given year at $5,000?a.401(k)b.Tax-Deferred Annuityc.Pensiond.IRA

Suppose that a family wants to start a college fund for their child. If they can get a rate of 5.2%, compounded monthly, and want the fund to have a value of $55,500 after 20 years, how much should they deposit monthly? Assume an ordinary annuity and round to the nearest cent.a.$131.93b.$2,662.49c.$1,643.30d.$3,446.64

Jackie’s broker charges her a commission of $8 per ten shares of stock she buys or sells. If Jackie buys 77 shares of Alesia Insurance at $10.34 per share and 120 shares of Ergar Appliances at $8.11 per share, how much will Jackie spend in commission?a.$796.18b.$157.60c.$973.20d.$1,926.98