Reference no: EM131942860

1. Which of the following is not one of the basic items found on Form 1040?  

A) adjusted gross income  

B) filing status

C) the purchase and sale dates for investments

D) exemptions

E) income from wages

2. Suppose that immediately after graduation you deposit $3,000 each year for 10 years and nothing thereafter for another 30 years until your retirement. You will earn 10% on this money. Which is closest to how much you will have on deposit in 40 years when you retire?

A) $834,295

B) $1,124,449

C) $1,890,784

D) $909,406

E) $47,812

3. Which of the following is not an evaluated item on a credit scorecard?

A) outstanding balances

B) age and employer

C) late payments

D) number of inquiries

E) number of credit cards

4. When planning for retirement which of the following are key factors to consider?

A) housing choices

B) health care costs

C) long-term care options

D) B & C only

E) all of the above

5. You are trying to decide between a new car that will cost $23,000 and a used one that will cost $15,000. You have $5,000 which will be the down payment for whichever car you buy. Assume that you can borrow the difference between your down payment and purchase price at 5% annual interest rate on a 5 year loan. How much more interest will you pay over time if you buy the new car instead of the used one? Assume monthly payments in your calculations.

A) $1,058.20

B) $1,322.60

C) $2,380.80

D) $989.40

E) Not enough information provided

6. Why might you want to set up a last will and testament?

A) You can increase the time required for probate

B) You can appoint a chosen guardian for children

C) You can avoid estate taxes

D) You can direct your health care wishes if you are incapacitated

E) All of the above