Quiz about Financial Alg -- Ch. 10 -- Retirement

Question 1

In order to retire with full SS benefits, someone born when you were will have to be

Accepted Answer

67

Answer

64

Answer

65

Answer

66

Question 2

In 2016, the maximum taxable income for SS was $118500, and tax rate was 6.2%. What is the max you would have paid in 2016?

Accepted Answer

7347

Answer

8250

Answer

73470

Answer

Impossible to tell without more info

Question 3

Mitch opened a retirement account that has an annual yield of 2.2% compounded monthly. He is planning on retiring in 13 years. How much must he deposit into that account each year so that he can have a total of $1,000,000 by the time he retires? Round to the nearest $10,000 dollars. (PRESENT VALUE)

Accepted Answer

70000

Answer

50000

Answer

5000

Answer

6000

Question 4

Circuit Tech offers their employees a flat pension plan in which a predetermined dollar amount (multiplier) is multiplied by the number of years of service to determine the monthly benefit, as shown in chart. After working for 23 years, what is Jane's pension?

Accepted Answer

1311

Answer

1196

Answer

1380

Answer

690

Question 5

Reece opens a retirement account with an APR of 4.1%, compounded monthly. He is planning to retire in 15 years. About how much will he have in the account when he retires if he deposits $750 a month? (FUTURE VALUE)

Accepted Answer

186084.60

Answer

405595.80

Answer

1000000

Answer

2.07

Question 6

If Lindsey's pension is $1,325, and she has a COLA of 1.8%, what is her pension amount for year 2?

Accepted Answer

1348.85

Answer

23.85

Answer

2385

Question 7

Jordan's employer offers a annual pension plan that is the product of the career average of his salaries while working there, the number of years of service, and a 1.4% multiplier. His average over 20 years is 64,000. What is the monthly pension?

Accepted Answer

17920

Answer

1493

Answer

64000

Answer

896

Question 8

How many social security credits do you need over a lifetime to qualify for Social Security?

Accepted Answer

40

Answer

4

Answer

30

Answer

44

Question 9

At what age can you retire and get full Social Security benefits?

Accepted Answer

67

Answer

65

Answer

62

Answer

66

Question 10

A person or persons who receive money at your death from a life insurance policy, chosen by policy holder.

Accepted Answer

beneficiary

Answer

Winner!

Answer

heir

Answer

Agent

Question 11

A type of insurance that covers you for a specific time period.

Accepted Answer

Term

Answer

Whole Life

Answer

Universal Life

Answer

PPO

Question 12

Term for the time period an employee must participate in a retirement plan to have the right to it.

Accepted Answer

Vested

Answer

Retiree

Answer

Vetted

Answer

Lucky

Question 13

COLA stands for

Accepted Answer

Cost of Living Adjustment

Answer

a beverage served at McDonald's

Answer

Children of Large Adults

Answer

Cancer of the Left Aorta

Question 14

New York life sells a 5 year term policy to a 50 year old man. According to their chart, the probability he dies in the next year is .0043. What is the probability he lives?

Accepted Answer

99.57%

Answer

.43%

Answer

50%

Answer

4.3%

Question 15

The money you put into this account already had taxes taken out of it.

Accepted Answer

Roth IRA

Answer

Pension

Answer

Traditional IRA

Answer

Traditional 401K

Question 16

You're promised a fixed benefit each month, which may increase with inflation.

Accepted Answer

Pension

Answer

Traditional 401K

Answer

Traditional IRA

Answer

Roth IRA

Question 17

Your company may contribute funds toward your retirement.

Accepted Answer

Pension

Answer

Roth IRA

Answer

Traditional IRA

Answer

Traditional 401K

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