PFIN Unit 1 Review

Jo wants to have $1,000,000 in 30 years. What monthly pmt must she make to accumulate that amount at 10% interest?

Bonds offer investors returns in the form of:

Which of the following investments allow small investors to diversify into a large portfolio?

Jody has $3,500 to invest. If she earns 12% return and leaves the money invested 5 years, what will her balance be?

T/F: All sales of stock are taxed as ordinary income, regardless how long they are held.

Initial Public Offerings (IPOs) trade in the secondary market.

CDs are a good investment for people who...

Sam's monthly income is $1976. His expenses are $975. If he saves the remainder, what is his savings rate?

According to Time Value of Money, a dollar next year is worth more than a dollar today.

Ali has $92K in assets, $32,000 car note, $20,000 loan, and a $5,000 credit card bal. What is her debt to asset ratio?

Which of the following are cash INFLOWS?

Jed bought 100 shares of stock at $25/sh. He collected $1/sh in dividends and sold at $30. What was his ROI?

Jen wants $500,000 at retirement in 30 yrs. If she invests $300/mo @ 8%, will she reach her goal?

Will it increase your net worth to purchase an asset?

Pam needs $1,000 for a trip in 3 years. How much does she need to invest today, at 3% interest, to achieve the goal?

For a monthly annuity (payment), _____ the number of periods by 12.

If you're looking for a fixed income, COMMON STOCK is the best type of investment.