QUESTION 1
The future value of the stream of cash flows based on the following data:
rate: 5%
nper: 10
pmt: $0
pv: -$1,000
type: 0
is:
$1,100
True
False

QUESTION 2
The future value of the stream of cash flows based on the following data:
rate: 5%
nper: 10
pmt: -$100
pv: -$1,000
type: 0
is:
$2,785.54
True
False

QUESTION 3
The future value of the stream of cash flows based on the following data:
rate: 5%
nper: 10
pmt: -$100
pv: -$1,000
type: 0
is:
$2,785.54
True
False

QUESTION 4
The future value of the stream of cash flows based on the following data:
rate:    8%
nper: 20
pmt:    ($300)
pv:       ($2,000)
type: 0
is:

The future value of the stream of cash flows based on the following data:
rate:    8%
nper: 20
pmt:    ($300)
pv:       ($2,000)
type: 0
is:
$23,050.50
True
False

QUESTION 5
Inflation erodes the real rate of return that you earn on your savings. If you expect 5% inflation in each of the next five years your real wealth will decline if it is all invested in assets that earn a 4% annual rate of return.
True
False

QUESTION 6
If you contribute to a 401(K) defined contribution plan your wealth grows at the six month U.S. Treasury bill (t-bill) rate.
True
False

QUESTION 7
There is no limit to how much an individual can contribute to a 401(K) plan each year.
True
False

QUESTION 8
There are no limits to how much an employer can contribute to an employee’s 401(K) plan each year.
True
False

QUESTION 9
The great thing about 401(K) retirement plans is that plan distributions are never taxed.
True
False

QUESTION 10
If you have a 401(K) plan you are required to begin making withdrawals from the plan on April first of the year after you turn 70.5 years of age.
True
False

QUESTION 1 The future value of the stream of cash flows based on t...