# personal finance; future value and 401(k)

*label*Business

*timer*Asked: Jan 12th, 2016

**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