Personal Finance 223 1B

The rule of 72 is.

Used to estimate how fast prices will double using annual rates

At the end of the year Yvonne received a form from her bank that reported income from her savings. That form is called.

10-99

If you begin saving 2000 dollars a year at 5% interest and save it for 9 years, what will these finds grow to in these years.

11.027x 2000

This tax is a major financial planning factor for most people because it is sometimes imposed at the federal state and local level.

Income tax

The main purpose of a personal financial statement.

All of the above

The types of tax services available that offer professional tax assistance use.

All of the above

Disposable income equals

Amount of money a person or household has to spend

How long should you keep documents relating to investments.

As long as you own the item

The document that would be most useful to plan spending and saving to achieve financial goals.

Budget

Adjustments to income include all of the following except.

Charity contributions

Fees, tips, and bonuses are forms of.

Earned income

A formalized report that summarizes your current financial situation analyzes your financial needs and recommends future financial activities.

Financial plan

An investor should expect to receive a risk premium.

Higher uncertainty about getting his/her money back

An advantage of effective personal financial planning is a what.

Increase control of financial affairs

You may be required to make estimated tax payments if.

Independent contractor

The inability to pay debts when they are due because liabilities far exceed the value of assets.

Insolvency

The goal to investing 50 dollars a month for the next 12 years for your nephew's college tuition is a

Long term goal

Discretionary income equals.

Money left over after paying housing, food, and other necessities

IF I can a dollar today and earn interest on it then it should be worth... in the future

More

The amount you would have left if all assets were sold, and all debts were paid in full is called

Net worth

When creating a budget which of the following statements is true.

Numbers in the budget are estimates

A worker's primary goal should be.

Pay his/her fair share taxes while taking advantage of appropriate tax benefits

Which of the following will increase the interest rate for a loan.

Poor credit rate

Taxes on earnings that fund old age, survivor, and disabilities fund.

Social security

Income that is not subject to tax is called.

Tax exempt income

Money management refers to.

day to day financial activities