VBC Quiz

You are exploring a career in nursing in the state of MA. The average hourly wage for a RN is $33.37. You are planning to work 40 regular hours plus 8 hours overtime at time and a half every week. What will your weekly earnings be?

$1,735.24

You set up monthly recurring payments of $110.03, $45.66, and $22.87. How much will your recurring payments total over one year?

$2,142.72

Your portfolio has lost an average of 5% each year for the last three years. Your initial investment was $25,000. What is the current value of your portfolio?

$21,434

The average wage for an electrician in CA is $25.47/hour. That is 11% above the national average. What is the national average?

$22.95

You expect that an investment could gain or lose as much as 20% in a year. Your investment is $5,000. What is the lowest value you expect at the end of the year?

$4,000

You are thinking of withdrawing all your funds; $45,000 from your 401 (k) at age 54. The normal tax rate for you would be 28%. The rules for withdrawing funds before the age of 59 1/2 is a 10% penalty. How much would you save if you waited until age 59 1/2?

$4,500

You purchased 50 shares of a stock at $100 per share. Your stock value dropped 5% in one year. If the stock were to continue to drop at the same rate for an additional half a year, what would be the total value of the stock at that time?

$4,630

The average annual stock return is 11.3%. If you begin your investment portfolio with $2,000, what will your portfolio be worth in 30 years if the average holds?

$49,646

The average annual salary for a teacher nationally is $58,353. This is projected to increase 2% per year for the next 4 years. What will your projected annual salary be in four years?

$63,163

You have 3 online accounts in three different banks valued at: bank "A" = $250.67, 12% interest, bank "B" $765.13, 7% interest, and bank "C" $28,500.36, 9% interest. What is the average interest gained from the three accounts in one year?

$882.89

Your savings account pays 2.5% interest per year. How much interest does the account pay per month.

.21%

You have two investments. The value of Investment A at the end of April was $500, at the end of May was $600, and at the end of June was $400. The value of Investment B at the end of April was $400, at the end of May was $300, and at the end of June was $500. What was the largest month to month percentage change in the TOTAL VALUE of your investments?

0%

A Roth IRA is advertised to pay 1.5% annual interest. You researched the rate of inflation to be 1.15% this year. What is the actual or real rate of return on the IRA?

0.35%

You invest $10,000 in stocks. You hope over the long-term, your investment will grow to $100,000. Assuming, the average annual return on your investment is 11.3 %, about how many years will it take to realize your goal of $100,000?

22

You decide to become a neurosurgeon. After high school, you will need four years of college, four years of medical school, five years of residency and a two-year fellowship. Assume you graduate high school at 18. How old will you be when you finish training?

33 years old

You lost 26% on a bad investment. You sell the investment and reinvest in a different stock. What investment return do you need in order to get back to your original amount?

35%

You bought 100 shares of stock at $15 per share. You sold your 100 shares at $21.75 per share. Calculate your percentage of gain.

45%

You have had $5,500 in a Roth IRA account for 3 years earning 1.2% annual interest. During those 3 years, the rate of inflation was 1.8% per year. Did the purchasing power of your Roth IRA dollars increase or decrease over 3 years.

Decreased

Assume risk and return are positively related. Which algebraic formula best represents this relationship?

Risk = m x Return where m is positive

You purchased $100 each of three different stocks in January. Stock A increased 30% in value. Stock B increased 15% in value. Stock C lost 20% of its original value. What was the overall net percentage of gain in the three stocks? (Round to the nearest percent.)

8%

You invested $1,200 in a mutual fund. Your account now has a value of $1,333. Your gain was:

$133

In your portfolio, you began with an equal investment in stocks and Money Market funds. Your stocks are now worth 3 times your Money Market funds. Your stock value is $7,000. What is the current value of your Money Market fund?

$2,333

You own 50 shares in a major corporation stock valued at $128 per share. This stock gained 12% in value last year. Assuming the stock will continue to grow at the same rate over the next 5 years, calculate the value of the stock per share in the 5th year.

$225.58

You invested $2,300 in a stock. Your account now has a value of $2,643. Your percentage gain on the investment (rounded to the nearest percent) was:

15%

Your portfolio value has grown from $2,500 to $3,800. What is the percent of growth rate?

52%

You are told that having a college education increases a person's earnings by 30% over their lifetime. A non-college graduate earns about $30,000 per year. How much more will you earn with a college education over a 40 year career?

$360,000

A stock you own earned: $200, $500, $100, and $700 over the last four years. What was the mean annual gain in value over the four years?

$375

The average student college loan rate is 4%. You borrowed $18,000 per year for 4 years for tuition, room, & board. If the interest is computed as simple interest, annually, how much interest will you owe when you graduate. Assume 4 years interest on the freshman year loan, 3 years on the sophomore loan, 2 years on the junior loan, and 1 year on the senior loan.

$7,200

Portfolio A is 100% invested in stocks. Portfolio B is 20% in money markets, 30% in bonds, and 50% in stocks. Which is more diversified?

Portfolio B

Calculate the Rate of Return on an initial investment of $6,000 valued at $6,500.

8.3%

You have some cash. You can either invest in a short-term bond that pays 4% or payoff some credit card debt at 9%. Which should you do?

Pay off the credit card

The current highest interest rate on a savings account is 1.85%. the current rate of inflation is 1.9%. what is the real dollar return on this account with a $1,020 balance at the end of the year

$ -.51

he current highest interest rate on a savings account is 1.85%. the current rate of inflation is 1.9%. what is the real dollar return on this account with a $1,020 balance at the end of the year

$ -.51

Your savings account pays 1.75% interest per year. You make a $500 deposit. How much interest does the account earn in the first month.

$.73

You chose to work beyond the age of 67. Your benefit increases 8% for every year you wait past the age of 67 but there is no increase in benefit beyond age 70. You are retiring at the end of this year, at the age of 72. If your normal monthly retirement benefit would have been $1,000 per month if you retired at 67, which math statement below could you use to roughly calculate your monthly benefit at age 72?

$1,000 + $1,000 x .08 x 3 = $1,240

You have three separate accounts with your bank that you can manipulate with online banking. Account "A" is a checking account with a $5,245.50 balance, Account "B" is a personal savings account with a $12,850.25 balance, and account "C" is a joint college savings account with your 12-year-old son. You move $2,500 from account "B" to account "A" to cover an unexpected bill. You also move 1.5% of the remaining balance in account "B" to account "C". What is left in account "B" after these transfers?

$10,195

You are now 20 years old and hope to save $500,000 for retirement at age 65. You are very unsure about the outlook for investment returns. If you assume no earnings on your investments, how much will you have to save each year?

$11,111

Your company has a plan that matches your retirement contributions up to 2% of your salary. Your annual salary is $22,000. You are paid bi-weekly (26 times per year). How much should you contribute to the retirement account each pay period to take full advantage of the company match?

$16.92

Last year you forgot to pay a total of three department store monthly statements. Two of the three charged you a $35 fee for this and one store charged you $25. You also forgot to pay your monthly credit card bill twice and the credit card company penalized you $30 per oversight and raised the interest rate on your credit card balance of $400 to 18% from 8% for the remaining 4 months of the year. This year you switched to online banking with automatic payment. What did online banking with autopay save you?

$168

Your Mutual Fund was valued at $237,500. It has lost 6% per year for the last 3 years. What is its value today?

$197,263.70

You have two accounts with balances $450 and $35. You want to bring up the balance in the second account but do not want the balance of the first to drop below $215. How much can you transfer from the first to the second account?

$235

By opting out of paper bank statements, your bank promises savings of $2 per month. How much will you save in a year?

$24 per year

You have $1,000 to invest. You invest 25% in a Money Market account, 50% in stocks, and 25% in bonds. What is the dollar amount invested in each?

$250, $500, $250

You are paying all eight of your monthly recurring bills free online now that you used to pay by "snail-mail". Stamps cost 47 cents each. What will you save on stamps in a year?

$45.12

You invest $3,000. You have speculated that you will earn an average of 7% on your initial investment each year. What do you expect the total value to be in ten years?

$5,901

You want to save for a brand-new car. You put the $5,000 your Grandma gave you when you graduated in an account that pays 6% interest and is compounded monthly. How much will you have at the end of five years? Hint: use Compound Interest formula A = P (1 +r/n)nt.

$6,744.25

Your automatic payment option pays bills of $23.17, $55.67, $2,345.15, $575.25 and $1.15. How much was the mean payment?

$600.08

You have accumulated $85,000 in student loans that average 5% interest. You graduate next month and will be paying off the loans over 10 years. Which of the following is most likely to be your monthly payment assuming you pay interest and a portion of the principal each month?

$900

You invest $1,000 in a fund. You check your statement at the end of April and you have lost 13%. When the statement for May comes, you see you have gained 13% in May. What is the value of your account? Round to the nearest dollar.

$983

You've had your money in a high yield Money Market account, earning 6.5% for one year. The rate of inflation was 5%. What is your true or real rate of return?

1.5%

You bought 200 shares of Stock A at $23.00 per share 6 months ago. It is now worth $47 per share. What was the percent of increase in the stock over 6 months?

104%

The Rule of 72 is a simple way to determine how long an investment will take to double given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors obtain a rough estimate of how many years it will take for the initial investment to duplicate itself. You want to double your initial investment of $5,000. You put your money in a high yield interest-bearing account earning 6% per year. How long will it take to double your money?

12 years

Your $1000 investment in an energy stock doubles. Your $1000 investment in a tech stock drops in half. What was the total return on the two investments?

25%

Your current schedule only lets you take two 1-credit courses every six months. You need 12 credits to get the degree you want. How long will it take you to get the degree?

3 years

You bought stocks in 2 different companies yesterday: 100 shares of stock "a" was purchased at $21.15 per share and gained 6% today; 50 shares of stock "b" was purchased at $14.23 per share and lost 1.5% today. What is your percentage gain or loss on your 2 stock portfolio?

4.1%

You purchased 100 shares of Granny Smith stock one year ago. You purchased your stock at $157.21 per share. You earned $232 in dividends this year. If you sold your all your shares today at the current market value of $217.58 per share, what would you rate of return be for the year? Calculate the Annual Rate of Return using the formula given to you in the reading assignment.

40%

You save $500 in a retirement account at age 25. It increases an average of 10% per year until you are 65. Which formula and result indicates how much money you will have in this account at age 65?

500 x (1 + 0.10) ^ (65 - 25) = $22,629.63b)500 x (1 + (0.10 x (65 - 25)) = $2,500

Your current account balance is $215. You have $322 of expenses each month. Your income is $444 per month. How long will it take you to accumulate a balance of $1000 in your account.

6.4 months

Stock returns vary from year to year. The more variance a stock displays the greater the potential risk. These are the rates of return for a stock over the last five years. Calculate the variance of these investment returns: 10, 30, 15, 5, 20. Hint: The variance of a series of numbers is the sum of the squares of their differences from the mean (average) of the numbers divided by the number of items in the series.

74

A stock is priced at $85 per share and pays a quarterly dividend of $2.10 per share. What is the dividend yield per stock share per year?

9.9%

Some people take the early retirement option at age 62. According to the Social Security Administration, if you retire at age 62, your retirement benefits will be permanently reduced by 25%. If your monthly benefit, at full retirement age (67), would have been $1300 per month, and you retire at age 62, how much would you lose in total annual income over one year?

$3,900

You put $2,000 into a tax-deferred retirement account this year. Your marginal tax rate is 15%. How much did you save on this year's tax bill?

$300

You contributed $4,000 (1st year), $3,500 (2nd year), $1,500 ( 3rd year), and $2,000 (4th year) into your retirement fund for each of the past 4 years. Your goal is to save at least $75,000. You have eleven years of work left before you retire. What is the average annual contribution you will need to make to reach your goal of $75,000?

$5,818

What is the value of a $1,000 investment that loses 5% each year for 8 years?

$663.42

You bought 100 shares of stock at $15 per share. You sold your 100 shares at $21.75 per share. Calculate your total profit from the sale.

$675

A course that costs $500 will allow you to get a job that pays $2 more per hour than your current job. How many hours will you need to work at the new job before your investment in education has "paid off"?

250

What is the percentage difference in average lifetime earnings of a college graduate earning $60,000 / year vs. a high school graduate earning $38,000 / year?

37%

You lost $65,000 out of your original $105,000 investment. What percentage of your initial investment was lost?

62%

The variance of a series of numbers is the sum of the squares of their differences from the mean (average) of the numbers divided by the number of items in the series. Variance is a common measure of risk. What is the variance of these investment returns? 10, 30, 20

66.7

You graph some investment options on a cartesian graph with risk on the y axis and return on the x axis. If you draw a best-fit line, you would expect it to:

Be upward sloping (positive slope)

You have two equal investments that always have exactly opposite returns. How will your total value of both investments vary over time.

It will stay the same

You have scheduled payments of $28.31, $34.56, and $19.12 coming up in the next week. Your current balance is $70.23. You do not expect any deposits. Will you have enough money in the account to cover the payments?

No

You put $500 in an interest bearing bank account that pays 2% per year but has a fee of $2 per month. Are you getting ahead?

No