Exam Preview for 31459: Managing Personal Finances for Long-Term Go

Managing Personal Finances for Long-Term Goals

Please note: exam questions are subject to change.

1. If you save $5 a day for 5 days a week, how much will you have in 10 years if it earns 8% a year? $2,150 $6,511 $12,014 $19,127
2. If you save $10 a day starting at age 52, how much will you have by age 70 if it earns 8% a year? $113,652 $175,808 $294,000 $317,912
3. Which of the following is an example of a flexible expense? Mortgage Entertainment Gas Credit card payment
4. Which of the following was NOT recommended as a savings strategy? Have parents bring lunch for their child's classroom Have parents bring birthday party items If you get a windfall, save it, do not spend it Have parents bring business supplies
5. At what age can you start collecting Social Security? 59 1/2 62 65 66
6. At what age can you get your full Social Security benefits? 62 64-65 66-67 68
7. For which one of the following IRAs is your contribution NOT tax deductible? Regular IRA Roth IRA SIMPLE IRA None of the above
8. Which IRA must you pay tax on the interest earned when you withdraw it in your retirement? Regular IRA Roth IRA SIMPLE IRA Both A and C
9. How much money does it take to get started saving with an IRA? $5 a month $50 a month $1,000 a month Depends on the investment company
10. Which type of IRA does NOT have income eligibility limits? Regular IRA Roth IRA SIMPLE IRA All of the above