Questions from Personal Finance

Q: Thomas earns $45,000 per year. What retirement plan

Thomas earns $45,000 per year. What retirement plan should Thomas consider under the following circumstances? a. He works for a large private firm. b. He works at a university. c. He owns a small...

Q: Lloyd and his wife, Jean, have no retirement plan at

Lloyd and his wife, Jean, have no retirement plan at work, but they contribute $4,000 each year to a traditional IRA. They are in a 25% marginal tax bracket. What tax savings will they realize for the...

Q: Ezra works for a firm that offers a 100% match up

Ezra works for a firm that offers a 100% match up to 4% of his salary on retirement contributions. How much will Ezra accumulate in 20 years if he contributes 4% of his salary of $100,000 per year ass...

Q: The Sampsons have been evaluating methods for investing money that will ultimately

The Sampsons have been evaluating methods for investing money that will ultimately be used to support their children’s college education. They have concluded that a mutual fund is better suited to the...

Q: The Sampsons have been evaluating methods for investing money that will ultimately

The Sampsons have been evaluating methods for investing money that will ultimately be used to support their children’s college education. They have concluded that a mutual fund is better suited to the...

Q: The Sampsons have been evaluating methods for investing money that will ultimately

The Sampsons have been evaluating methods for investing money that will ultimately be used to support their children’s college education. They have concluded that a mutual fund is better suited to the...

Q: With your help, Dave and Sharon Sampson have now established a

With your help, Dave and Sharon Sampson have now established a financial plan. Among their key financial planning decisions were the following: • Budgeting. They decided to revise their budget to mak...

Q: If Hope (from problem 1) had invested the same amount

If Hope (from problem 1) had invested the same amount of money in a no-load fund with the same price per share, how many shares could she have purchased? Data from Problem 1: Hope invested $9,...

Q: Mark owns a mutual fund with a NAV of $45.

Mark owns a mutual fund with a NAV of $45.00 per share and expenses of $1.45 per share. What is the expense ratio for Mark’s mutual fund?  

Q: Hope (from problem 1) later sells her shares in the

Hope (from problem 1) later sells her shares in the mutual fund for $37 per share. What would her return be in problems 1 and 2? Data from Problem 1: Hope invested $9,000 in a mutual fund...