A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities.

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The amount to which current savings will increase based on a certain interest rate and a certain time period; also referred to as compounding.
The current value for a future amount based on a certain interest rate and a certain time period; also referred to as discounting.
If you borrow $10,000 with an interest rate of 8 percent to be repaid in six equal payments at the end of the next 6 years, what would be the amount of each payment? Use Exhibit 1-D. (Round your PV factor to 3 decimal places and final answer to the nearest whole dollar.)Amount per payment $
A family spends $40,000 a year for living expenses. If prices increase 2 percent a year for the next two years, what amount will the family need for their annual living expenses in two years? Use Exhibit 1-A. (Round your FV factor to 3 decimal places and final answer to the nearest whole dollar.)Living expenses $
Pete Morton is planning to go to graduate school in a program of study that will take three years. Pete wants to have $10,000 available each year for various school and living expenses. Use Exhibit 1-D. If he earns 4 percent on his money, how much must he deposit at the start of his studies to be able to withdraw $10,000 a year for three years? (Round PV factor to 3 decimal places and final answer to the nearest whole dollar.)
In 2005, selected automobiles had an average cost of $15,000. The average cost of those same automobiles is now $17,250. What was the rate of increase for these automobiles between the two time periods? (Round your answer to the nearest whole percent.)Rate of increase %
If you desire to have $20,000 for a down payment for a house in four years, what amount would you need to deposit today? Assume that your money will earn 4 percent. Use Exhibit 1-C. (Round your PV factor to 3 decimal places and final answer to the nearest whole dollar.)Deposit $
A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities is a(n)Insurance prospectus.Financial plan.Budget.Investment forecast.Statement.
If inflation is expected to be 8 percent, how long will it take for prices to double?6 years7 years9 years12 years18 years
An advantage of effective personal financial planning is:The use of low-interest savingsIncreased impulse spendingIncreased control of financial affairsMore credit card debtLess monitoring of investments
Every decision involves uncertainty, which is referred to asConsequences of choices.Alternative courses of action.Financial goals.Personal values.Evaluating risk.
The stages in the family situation and financial needs of an adult is called the Financial planning processBudgeting procedurePersonal economic cycleAdult life cycleTax planning process
Making financial decisions related to income involves all of the following exceptSpendingSavingSharingTakingAll of these are financial decisions
Attempts to increase income through employment are part of the _____________ component of financial planning.ObtainingPlanningSavingBorrowingSpending
The first step of the financial planning process is toDevelop financial goals.Implement the financial plan.Determine your current financial situation.Evaluate and revise the financial plan..Create a financial action plan.

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The problem of bankruptcy is associated with overuse and misuse of credit in the ______________ component of financial planning.SharingSavingsObtainingBorrowingProtecting
The time value of money refers toPersonal opportunity costs such as time lost on an activity.Financial decisions that require borrowing funds from a financial institution.Changes in interest rates due to changes in the supply and demand for money in our economy.Increases in an amount of money as a result of interest earned.Changing demographic trends in our society.
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