Unit 5 Retirement TEST
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Last updated over 4 years ago
11 questions
Note from the author:
Financial Literacy
1
Ethan is 48 years old. He is planning on retiring when he turns 62. He has opened an IRA with an APR of 2.95% compounded monthly. If he makes monthly deposits of $850 to the account, how much will he have in the account when he is ready to retire?
Ethan is 48 years old. He is planning on retiring when he turns 62. He has opened an IRA with an APR of 2.95% compounded monthly. If he makes monthly deposits of $850 to the account, how much will he have in the account when he is ready to retire?
1
Beth worked for a company that calculates a pension that is based on the average of the highest 5 years, number of years of service, and a 2% multiplier. Her highest 5 years were $ 83,612 $ 82,893 $ 88,475 $ 85,873 $ 83,738. She worked for the company for 31 years. Calculate Beth’s Annual Pension.
Beth worked for a company that calculates a pension that is based on the average of the highest 5 years, number of years of service, and a 2% multiplier. Her highest 5 years were $ 83,612 $ 82,893 $ 88,475 $ 85,873 $ 83,738. She worked for the company for 31 years. Calculate Beth’s Annual Pension.
1
Gillian started a retirement account with $10,000 when she turned 35. The account compounds interest quarterly at a rate of 3.625%. She made no further deposits into the account. After 20 years, she decided to withdraw 40% of what had accumulated in the account so that she could make her home handicap accessible. She had to pay a 10% penalty on the early withdrawal. What was her penalty?
Gillian started a retirement account with $10,000 when she turned 35. The account compounds interest quarterly at a rate of 3.625%. She made no further deposits into the account. After 20 years, she decided to withdraw 40% of what had accumulated in the account so that she could make her home handicap accessible. She had to pay a 10% penalty on the early withdrawal. What was her penalty?
1
What is the maximum anyone could have paid into Social Security tax in the year 2009?
What is the maximum anyone could have paid into Social Security tax in the year 2009?
1
Ravi had two jobs in 2009. One employer paid him $59,810 and the other paid him $61,200. Each employer took out 6.2% for Social Security. Does Ravi overpay in Social Security, if so by how much?
Ravi had two jobs in 2009. One employer paid him $59,810 and the other paid him $61,200. Each employer took out 6.2% for Social Security. Does Ravi overpay in Social Security, if so by how much?
1
1
What is the life expectancy for a 65-year-old female?
What is the life expectancy for a 65-year-old female?
1
Until what age is a 68-year-old male expected to live?
Until what age is a 68-year-old male expected to live?
1
If the company insures 20,000 59-year-old males, how many are expected to die before their 60th birthday?
If the company insures 20,000 59-year-old males, how many are expected to die before their 60th birthday?
1
Based on the table, what is the probability that a 56-year-old female will live to her 57th birthday?
Based on the table, what is the probability that a 56-year-old female will live to her 57th birthday?
1
John has a universal life insurance policy with a face value of $250,000. The current cash value of the policy is $8,260. If the premium is $97 per month, for how many months can the cash value be used to pay the Premium?
John has a universal life insurance policy with a face value of $250,000. The current cash value of the policy is $8,260. If the premium is $97 per month, for how many months can the cash value be used to pay the Premium?