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School

Chamberlain University College of Nursing *

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Course

6373

Subject

Accounting

Date

Nov 24, 2024

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pdf

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1

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CRPC PRACTICE EXAM 1 200 QUESTIONS AND WELL ELABORATED ANSWERS{2 DIFFERENT VERSIONS}ALREADY A GRADED 2023-2024 UPDATE|NEW!!{ACTUAL EXAM} Which of the following are correct statements about income replacement percentages? - ANSWER- II, III, & IV II IRP vary between low-income and high-income retirees III IR ratios should not be used as the only basis for planning IV IR ratios are useful for younger clients as a guide to their long-range planning and investing If Tom and Jenny want to save a fixed amount annually to accumulate $2 million by their retirement date in 25 years (rather than an amount that grows with inflation each year), what level annual end of year savings amount will they need to deposit each year, assuming their savings earn 7% annually? - ANSWER- "END" mode and "1 P/Yr". FV = 2,000,000 I/YR = 7 N = 25 PV = 0 then PMT = $31,621 Bill and Lisa Hahn have determined that they will need a monthly income of $6,000 during retirement. They expect to receive SS benefits amounting to $3,500 per month at the beginning of each month. Over the 12 remaining years of their preretirement period, they expect to generate an average annual after-tax investment return of 8%; during their 25-year retirement period, they want to assume a 6% annual after-tax investment return compounded monthly. They want to start their monthly retirement withdrawals on the first day they retire. What is the lump sum needed at the beginning of retirement to fund this income stream? - ANSWER- Monthly retirement income need is not specified as "today's dollars" and no inflation rate specified; therefore, it must be assumed that the $2,500 net monthly income need represents retirement dollars, and the retirement period income stream is level. To calculate the lump sum needed at the beginning of retirement, discount the stream of monthly income payments at the investment return rate: BEG mode and "12 P/Yr"
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