Quiz #12 - College Savings - Results

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School

Old Dominion University *

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345

Subject

Finance

Date

Apr 3, 2024

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pdf

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Uploaded by DoctorMaskRam311

Results 10 Out of 10 points Time for this attempt Your Answers: 1 / 1 point Amy pays quali±ed education expenses of $2,800 for her son, Luke. How much of an American Opportunity Tax Credit (AOTC) is Amy entitled to this year? 1 / 1 point Which of the following is/are true regarding 529 Savings Plans? Take Now Attempt History Results Points Score (Highest score is kept) $2,200. $2,800. $2,500. $2,250. 100% 1 2

1 / 1 point What is one of the primary differences between a Coverdell Education Savings Account and 529 Savings Plan? 1 / 1 point All of the following are treated as assets of the parent for ±nancial aid, except? 1 / 1 point Which of the following is not a repayment method for a Stafford Loan? A federal income tax deduction is not permitted for contributions to a 529 Savings Plan. All of the above. There are no income limitations (phase-outs) on who can contribute to a 529 Savings Plan. Quali±ed distributions from a 529 plan can be used to pay for a computer. A 529 Savings Plan must be distributed by the time the bene±ciary turns age 30. A 529 plan has a phase-out limit for participation. A Coverdell does not have a phase-out limit for par±cipa±on. A 529 Savings Plan allows for front loading, but a Coverdell does not Coverdell ESA UGMA 529 Savings Plan Prepaid Tuition Income Based Repayment. Graduated Repayment. Success Repayment. Extended Repayment. 3 4 5

1 / 1 point Which of the following statements, if any, are correct? 1. Grants are money provided to students that does not require repayment. 2. A Federal Pell Grant is need-based ±nancial aid speci±cally for students who have already received an undergraduate degree and are pursuing a graduate degree. 1 / 1 point Johnny and June would like to begin saving for their children’s college education. They have four kids, ages 1, 5, 11, and 14. Each child will begin college at 18 and attend a private university for four years. Tuition is currently $22,000 per year and is increasing at 4% per year. They can earn an after-tax rate of return of 9%. How much must they save at the end of each year if they would like to make the last payment at the beginning of their youngest child’s last year of college? 1 / 1 point Frank and Miranda would like to plan for their son’s college education. They would like their son, who was born today, to attend a private university for 4 years beginning at age 18. Tuition is currently $70,000 per year and has increased at an annual rate of 6%, while in²ation has only increased at 3% per year. They can earn an after-tax rate of return of 8%. How much must they save at the end of each year if they would like to make the last payment at the beginning of their son’s ±rst year of college? 1 only. 2 only. Both 1 and 2. Neither 1 nor 2. $16,479. $22,868. $24,434. $19,271. $20,755 6 7 8

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1 / 1 point Johnny has an undergraduate degree and has decided to go back to school to pursue a graduate degree. He has incurred $6,500 in quali±ed expenses this year. What is the maximum Lifetime Learning Credit Johnny can take this year? 1 / 1 point Which of the following is a quali±ed education expense for the purpose of tax-free scholarships? $12,846 $20,371 $19,385 $1,800. $1,300. $2,000. $1,200. Textbooks. Transportation expenses. Room and board. Equipment not required for attendance. 9 10