are142_practice_final_key

are142_practice_final_key - Final Exam ARE 142 1. Which of...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Final Exam ARE 142 1. Which of the following is an example of a revolving line of credit? A) Adjustable rate home mortgage B) Debit card C) Credit card D) Automobile loan E) Prepaid card 2. Which of the following is NOT an example of consumer credit? A) A loan to purchase new furniture B) Automobile loan C) Education loan D) Interest only home mortgage 3. According to The Millionaire Next Door, there is a positive correlation between _____________ and wealth. A) Sending your children to private schools B) Self-employment C) Living beyond your means D) Excessive consumption 4. According to the Millionaire Next Door, what does the acronym PAW stand for? A) Prodigious Accumulator of Wealth B) Primary Accumulator of Wealth C) Professional Accumulator of Wealth D) Powerful Accumulator of Wealth E) None of the Above 5. Life insurance would be most appropriate for: A) A 70-year old Grandpa with low net worth. B) A 25 year old single male. C) A single mother with a 20 year old son. D) A young couple with a healthy 10 year old daughter. E) All of the above. 6. Which of the following forms of life insurance does NOT incorporate a savings plan? A) Term B) Variable C) Whole D) Universal E) Industrial Life Insurance 7. A 529 Plan is most suitable for a person in the following situation:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
A) Bankruptcy B) Plans on attending grad school in the future C) Extremely high levels of consumer debt D) Recently disabled 8. If you invest $1000 in the stock market today and estimate 9% returns over the course of the investment, how much money will you have after 20 years? A) $6,009 B) $5,604 C) $2,800 D) $3,498 9. The Goon Family estimates the following information while trying to decide on a life insurance policy for Mrs. Goon, the primary breadwinner. Mrs. Goon's husband's annual income $ 30,000 Family's annual living expenses $ 50,000 Mrs. Goon's funeral arangements $ 8,000 Total future College Expenses for the Goon kids $ 45,000 Total Amount Currently in Savings $ 35,000 The Goon family estimates that support for 10 years will be necessary upon the unexpected death of Mrs. Goon. Under the Needs Analysis approach, how much life insurance should Mrs. Goon purchase? Assume that the life insurance proceeds are not invested and the expenses/income does not change throughout the 10 year period. A) $218,000 B) $108,000 C) $168,000 D) $288,000 10. Calculate the monthly mortgage payment on a 30-year, fully amortized $340,000 loan with a 7% annual interest rate. A) $2,262
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/11/2009 for the course ARE 142 taught by Professor Staff during the Winter '08 term at UC Davis.

Page1 / 7

are142_practice_final_key - Final Exam ARE 142 1. Which of...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online