Unit 16 Review

If you have $45,000 today, and inflation is 2% each year, how much would you need in 15 years to have the same buying power?

Use the formula:

• $60,564.08

• $845,649.61

• 
  $688,500.29

• 
  $45,000.00

If you have $45,000 today, and deflation is 3% each year, how much would you need in 15 years to have the same buying power?

Use the formula:

• $29,999.97

• 
  $28,496.30

• 
  $70,108.53

• $45,000.00

Your employer offers a 401(k) plan in which they will match 100% of your contributions, up to 5% of your salary. If you make $45,000 in a given year, and you contribute $6,000, how much will your employer contribute that year?

• 
  $6,000

• 
  $8,250

• 
  $22,500

• $2,250

Your employer offers a 401(k) plan in which they will match 100% of your contributions, up to 5% of your salary. If you make $45,000 in a given year, and you contribute $6,000, how much TOTAL will YOU AND YOUR EMPLOYER contribute that year?

• 
  $6,000

• 
  $8,250

• 
  $22,500

• $2,250

Suppose that a safety deposit box at your bank costs $50/month to rent. How much would it cost for you to rent the box for 12 years?

• 
  $2,400

• 
  $7,200

• 
  $600

• $1,200

Suppose you have $2,000 sitting in an account that pays 3% interest compounded daily. You decide to add $10 at the beginning of every month to the account. What will the account be worth after 2 months?

https://www.calculatorsoup.com/calculators/financial/compound-interest-calculator.php

• 
  $2030.10

• $2015.03

• $170.01

• 
  $2030.08

Match each type of record with the correct description and examples.

• 
  financial records

• 
  tell about your history: birth, death, military, social security

• legal records

• formal record of activities: tax returns, bank statements, credit reports

• 
  vital records

• usually completed by a lawyer or in a court: wills, trusts, marriage

• property records

• 
  show what you own or have owned: housing, car titles, jewelry appraisals

As a federal health insurance program, who does Medicare support?

Select all that apply.

• 
  individuals 65 or older

• 
  individuals that have end-stage renal disease

• 
  individuals with low income

• individuals that have a disability

As a government-sponsored health care program, who does Medicaid support?

Select all that apply.

• 
  low income individuals

• retired individuals

• individuals 65 or older

• individuals with a disability

You are getting ready to retire and are currently making $79,000/year. According to financial experts quoted in the lesson, what is the minimum that you should have saved in retirement accounts if this is your salary?

• $7,900

• $790,000

• $79,000

• NOTHING