Fundamentals of Financial Planning Questions
Misaki purchased a house for $300,000. She put down 20% and financed the remainder over 30 years. Misaki's interest rate on the mortgage is 7.5%. Her first payment is due on January 1 of the current year. What is the total amount of interest paid over the life of the loan? A. $240,000.00 B. $300,000.00 C. $364,121.34 D. None of the Above
C Monthly Payment × 360 Payments = Total Payments - Original Loan Balance = Interest Paid 1,678.11 × 360 = 604,121 - 240,000 = 364,121
Subjectivity tends to dominate whose thinking regarding financial success? Client Planner Client & Planner
Client
Match Know your limitations and refer what you don't know: Disclose conflicts of interest: Do not disclose client information: Properly supervise subordinates: Competence, Fairness, Confidentiality, Diligence
Competence: Know your limitations and refer what you don't know Fairness: Disclose conflicts of interest Confidentiality: Do not disclose client information Diligence: Properly supervise subordinates
The primary difference between open end and closed end investment companies is: A. Closed end funds always sell at par value. B. Open end funds do not charge sales fees. C. Closed end funds guarantee the Net Asset Value (NAV) at the time of sale or purchase. D. Closed end funds sell only a limited number of shares.
D Closed-end funds offer a limited number of shares, while open-end funds continually create new shares as new monies are obtained. Closed-end funds offer no price guarantees and do not always sell at net asset value.
What is one of the primary differences between a Coverdell ESA and a 529 Savings Plan is true? A. Coverdell can be used for private elementary, middle or high school, a 529 cannot. B. A Coverdell does not have a phase-out limit for participation, 529 does have a phase-out limit for participation. C. Both A & B D. Neither A nor B
D Coverdell and 529 Plans can be used for private elementary, middle, or high school (as of TCJA 2017). A Coverdell does have phase-out limits, a 529 does not.
What debts are not discharged in bankruptcy?
The following debts are not discharged in bankruptcy: all student loans, property liens, three years of back taxes, child support, alimony, and debts obtained through fraud.
