# personal finance; future value and 401(k)

FratBro23
Category:
Price: \$15 USD

Question description

QUESTION 1

The future value of the stream of cash flows based on the following data:

rate: 5%
nper: 10
pmt: \$0
pv: -\$1,000
type: 0

is:

\$1,100

True

False

QUESTION 2

The future value of the stream of cash flows based on the following data:

rate: 5%
nper: 10
pmt:  -\$100
pv: -\$1,000
type: 0

is:

\$2,785.54

True

False

QUESTION 3

The future value of the stream of cash flows based on the following data:

rate: 5%
nper: 10
pmt:  -\$100
pv: -\$1,000
type: 0

is:

\$2,785.54

True

False

QUESTION 4

The future value of the stream of cash flows based on the following data:

rate:  8%

nper:  20

pmt:  (\$300)

pv:  (\$2,000)

type:  0

is:

The future value of the stream of cash flows based on the following data:

rate:  8%

nper:  20

pmt:  (\$300)

pv:  (\$2,000)

type:  0

is:

\$23,050.50

True

Flase

QUESTION 5

Inflation erodes the real rate of return that you earn on your savings. If you expect 5% inflation in each of the next five years your real wealth will decline if it is all invested in assets that earn a 4% annual rate of return.

True

False

### QUESTION 6

If you contribute to a 401(K) defined contribution plan your wealth grows at the six month U.S. Treasury bill (t-bill) rate.

True

False

QUESTION 7

There is no limit to how much an individual can contribute to a 401(K) plan each year.

True

False

### QUESTION 8

There are no limits to how much an employer can contribute to an employee’s 401(K) plan each year.

True

False

QUESTION 9

The great thing about 401(K) retirement plans is that plan distributions are never taxed.

True

False

QUESTION 10

If you have a 401(K) plan you are required to begin making withdrawals from the plan on April first of the year after you turn 70.5 years of age.

True

False

(Top Tutor) Daniel C.
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