personal finance; future value and 401(k)

FratBro23
Category:
Business & Finance
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


 


 


 



Tutor Answer

(Top Tutor) Daniel C.
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School: UCLA
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