FINA-523 – Summer 2011 - First Quiz – Chapters 1 thru 4
You need to review your progress, reevaluate, and revise your plan (step 5) because
A) your financial needs change over your lifecycle
B) your employment situation changes from time to time
C) your net worth will change over time
D) your family situation may change from time to time
E) all of the above are good reasons to periodically review your financial plan
Claudia has $4,500 automatically deducted for insurance from her annual salary of
$60,000. Additionally $7,500 is deducted each year in taxes. When preparing her
personal income statement, what figure should Claudia enter for her income?
3) Your money grows faster as the compounding period becomes longer.
How much can you borrow today if you can make payments of $3,600 a year for the
next five years and the interest rate is 10%?
You and your spouse have earned salary and wages of $41,750.
In addition you
have municipal bond interest income of $600 and savings account and certificate of
deposit interest income of $800.
You paid a total of $600 in interest on your car loan.
Using only this information, what is your total income for tax purposes?
E) none of the above
If your liabilities are greater than the value of your assets you are considered