WGU Student Portal Pre Assesment

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School

Western Governors University *

*We aren’t endorsed by this school

Course

363

Subject

Finance

Date

Jan 9, 2024

Type

pdf

Pages

Uploaded by ProfFog22214

12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 1/20 PRE-ASSESSMENT: PERSONAL FINANCE (PCFC) Attempt #4 Status: Passed 1. An individual wants to build up an emergency fund in a savings account. Monthly expenses for this individual total $4,000 per month, while monthly income is $5,000. How much can be saved if the individual wants to build up two months’ worth of income savings? YOUR ANSWER CORRECT ANSWER $1,000 $2,000 $4,000 $5,000 2. An individual wants to make a large purchase that will take two years to pay off. The individual owns a home, earns an income of $75,000, and has no other debt aside from a $900 mortgage payment with ±ve years left a 3%. The individual will retire within one year and will be required to take minimum distributions from a traditional retirement account. Which ±nancing option is appropriate for this individual’s ±nancing objective? YOUR ANSWER CORRECT ANSWER A one-time credit card purchase A home equity line of credit An early distribution from retirement accounts A consumer ±nance company loan 3. An individual's net earnings are $60,000 per year, with living expenses for housing, food, and transportation amounting to $3,200 per month. The individual wants to save $30,000 for a home down payment and plans to travel once a year, with the trip costing $3,000. How long until the individual can fund both goals for the same year if income and expenses stay consistent? YOUR ANSWER CORRECT ANSWER 1 year and 8 months WGU Knowledge Center Accessibility Policy Accessibility Settings

12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 2/20 YOUR ANSWER CORRECT ANSWER 2 years and 9 months 3 years and 2 months 3 years and 4 months 4. A cost-sensitive individual utilizes an advisory ±rm for ±nancial planning and investment management with a conservative risk pro±le. The client pays $1,000 per year for a ±nancial plan and $100 per year in investment product expenses. Which possible outcome can complicate this individual’s expectations based on the risk pro±le and needs? YOUR ANSWER CORRECT ANSWER Firm’s allocation projecting a short investment time horizon Firm recommendations not meeting investment risk appetite Firm’s fees exceeding overall investment returns Firm’s product offering increasing in cost annually 5. Jack is a freelance technical writer receiving a 1099 form from every client paying over $600, and Jack earns between $60,000 and $65,000 per year. Jack also has increased monthly expenses to $4,000 per month, as spending needs have increased after Jack quit a job last year that paid $55,000 in W-2 wages. How should Jack modify ±nancial planning around this employment change? YOUR ANSWER CORRECT ANSWER Fund an investment account to increase money available for future tax payments Maximize business deductions and aggregate savings for higher tax obligations Maintain deductible expense spending to have the highest possible tax write-offs Make large cash donations to charitable causes to deduct against taxable income 6. An individual earns $75,000 annually. Monthly rent is $2,200, and 20% of monthly cash income is spent on utilities, groceries, and transportation. To pay off a credit card in six months, the client agrees to monthly payments of $1,650. What is the monthly debt-to-income ratio? Accessibility Policy Accessibility Settings

12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 3/20 YOUR ANSWER CORRECT ANSWER 25.6 26.4 32.5 33.2 7. An individual has monthly expenses of $1,800 for rent and $1,000 for groceries, transportation, and other necessary expenses. Which average return should the individual expect to match 25% of yearly expenses on a $100,000 investment? YOUR ANSWER CORRECT ANSWER 8.2% 8.4% 9.6% 9.8% 8. A student is working part-time while going to university. The student is making $18,000 per year and saves $3,000 per year, as $15,000 of the student’s yearly living expenses are currently subsidized by grants. Grant funding will run out when the student has one year left of schooling. How much of a de±cit will the student have to ±nance if the student saves each year for three years? YOUR ANSWER CORRECT ANSWER $3,000 $6,000 $9,000 $12,000 9. An individual’s ±nancial goal is to pay off debt, including $15,000 with an APR of 12%, $20,000 with an APR o 8%, and $15,000 with an APR of 6%. How should the individual distribute debt payments? Accessibility Policy Accessibility Settings

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12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 4/20 YOUR ANSWER CORRECT ANSWER Make at least minimum payments to all, with extra funds towards $15,000 with an APR of 12% Pay off the highest amount of debt of $20,000 with an APR of 8% ±rst, then other debts Satisfy the lowest interest debt of $15,000 with an APR of 6% ±rst before paying other debts Proportionally distribute payments to all debts, paying off $7,500 for average APR of 10% earliest 10. An individual wants to allocate $600 per month into an emergency savings account. The individual plans on not using the funds and wants to accumulate a return to offset the effects of in²ation, but the individual also prioritizes liquidity and price stability, as the individual has low risk tolerance. Which option will be appropriate for this goal? YOUR ANSWER CORRECT ANSWER A ladder of short-term certi±cates of deposit at a bank A diversi±ed municipal bond fund in class C shares A money market account with yields close to the 10-year treasury note A variable annuity with 10% yearly permitted disbursements 11. A family wants to create a budget to fund two goals of paying a new mortgage and saving for a one-year-old child’s future education costs. The mortgage rate is 4.8% for a 30-year loan, and the family wants to utilize a target-date fund in a state-sponsored 529 plan. Interest rates are projected to rise, as they are currently at 0.25%, and the economy has reached the peak of the cycle two months ago and is now starting a decline. How should funding be distributed towards both goals to minimize overall interest payments? YOUR ANSWER CORRECT ANSWER Make minimum mortgage payments and fund the 529 as much as possible Fund both the 529 and the mortgage equally with surplus income Delay funding the 529 until the economy reaches a trough, and increase mortgage payments Delay making larger mortgage payments until the 529 is fully funded and being distributed for expenses Accessibility Policy Accessibility Settings

12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 5/20 12. Alex has an income that exceeds expenses each month and wants to begin earning a return to preserve purchasing power as soon as possible. Alex has a low risk tolerance and wants to be able to access the majority of the money within a day. Which action should Alex take next? YOUR ANSWER CORRECT ANSWER Buy a ±xed rate annuity once funds accumulate Purchase a high yield bond mutual fund Put funds in a money market account Invest in dividend yielding stocks 13. What service do investment banks offer that commercial banks lack? YOUR ANSWER CORRECT ANSWER Utilizing treasury securities Offering certi±cates of deposit Collateralizing trust account deposits Issuing stock offerings 14. Eva wants to use a comprehensive ±nancial plan created by a certi±ed planning professional to make prudent budgeting decisions and achieve Eva’s ±nancial goals. Eva also wants to grow surplus cash in a diversi±ed, expertly managed portfolio. Where should Eva go to get this service? YOUR ANSWER CORRECT ANSWER To an insurance company To an investment bank To a depository institution To a brokerage ±rm 15. Jack has received a $15,000 bonus and wants to use the funds for investing in publicly traded securities. What will happen if Jack chooses to place the funds in a brokerage ±rm compared to a mutual savings bank? Accessibility Policy Accessibility Settings

12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 6/20 YOUR ANSWER CORRECT ANSWER Jack will have access to ±nancial planning services. Jack will be able to deposit funds into a savings or checking account. Jack will be able to utilize mutual fund accounts. Jack will be eligible to borrow a consumer loan at a low rate. 16. An experienced investor with a large estate is seeking advice on advantageous tax-mitigation strategies and wealth preservation for inherited wealth, properties, and various ±nancial assets. The investor handles monetary assets in a self-directed account and prefers to control allocations. What ±nancial service provider ±ts this investor’s needs? YOUR ANSWER CORRECT ANSWER A broker-dealer A fee-only ±nancial planner An investment bank A registered investment adviser 17. What advantage does an online bank have over other kinds of banks? YOUR ANSWER CORRECT ANSWER Higher interest earned on savings accounts Lower interest charges on commercial loans Superior rates on certi±cates of deposit Better approval rates for mortgage applications 18. Which type of ±nancial institution should an individual consider if Federal Deposit Insurance Coverage (FDIC or National Credit Union Administration (NCUA) insurance on funds are desired? YOUR ANSWER CORRECT ANSWER Stock brokerage ±rm Financial services company Accessibility Policy Accessibility Settings

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12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 7/20 YOUR ANSWER CORRECT ANSWER Depository institution Insurance company 19. A customer wants to buy a car but has a poor credit history. Which ±nancial entity would be able to fund a purchase for this customer? YOUR ANSWER CORRECT ANSWER Commercial bank Subprime lender Auto investing ±rm Credit union 20. What are the bene±ts of opening a savings account with a credit union? YOUR ANSWER CORRECT ANSWER Free corporate stock on the opening of a new account Higher savings rates than through a commercial bank More cash rewards than through a public bank Unlimited transfers to external accounts 21. An individual is deciding between utilizing the ±nancial planning advice of a representative of an annuity company or a broker/dealer. Which element distinguishes the product offerings of the two companies? YOUR ANSWER CORRECT ANSWER Account fees Deposit Protection Market Volatility Asset Liquidity Accessibility Policy Accessibility Settings

12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 8/20 22. An individual has a credit card with a 16% annual interest rate, a 5% fee for late payments, and a $10,000 credit limit. There is currently a $4,000 outstanding balance. What is the late payment fee if this individual makes a monthly payment after the 30-day grace period? YOUR ANSWER CORRECT ANSWER $200.00 $300.00 $600.00 $800.00 23. An individual has a credit card with a 15% annual interest rate, a 3% balance transfer fee, and a $10,000 credi limit. The individual transfers a $5,000 balance from another credit card to this card. What is the balance transfer fee for this transaction? YOUR ANSWER CORRECT ANSWER $50 $100 $150 $200 24. An individual has the debts and assets shown in this table. Vintage guitar (market value) $6,000 Auto loan (remaining balance) $8,500 Home mortgage loan (remaining balance) $180,000 Home current market value $300,000 Personal loan (current balance) $15,000 Stock portfolio (market value) $70,000 What is this individual’s net worth? YOUR ANSWER CORRECT ANSWER $172,500 $247,000 Accessibility Policy Accessibility Settings

12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 9/20 YOUR ANSWER CORRECT ANSWER $279,500 $418,500 25. An individual’s home is currently worth $400,000. The house’s value undergoes de²ation of 4.2% after one year. What will the home’s value be on the individual’s updated balance sheet (asset and liability summary)? YOUR ANSWER CORRECT ANSWER $232,000 $383,200 $397,500 $416,800 26. The value of a home was $350,000. Thanks to a robust economic cycle, the value of homes has risen an average of 8%. What is the current value of this home? YOUR ANSWER CORRECT ANSWER $364,000 $378,000 $385,000 $630,000 27. How do tenant rights grant protection for tenants who have reported a landlord for numerous building code violations? YOUR ANSWER CORRECT ANSWER By preventing retaliatory actions By ensuring habitability of property By reimbursing for making repairs By creating a process for grievances Accessibility Policy Accessibility Settings

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12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 10/20 28. An individual has purchased a foreclosed home but is concerned that previous owners will overturn the foreclosure and claim the right to take back ownership of the property. Which type of insurance should this individual consider? YOUR ANSWER CORRECT ANSWER Mortgage insurance Title insurance Home warranty insurance Private mortgage insurance 29. Which goal would lead an individual to choose a ±xed mortgage over an adjustable mortgage? YOUR ANSWER CORRECT ANSWER The monthly payment will be less. The payment will remain the same. The interest rate may decrease. The fees will be lower. 30. An individual recently purchased a home and would like to have a payment schedule that details the amount paid toward interest and the principal. Which type of payment schedule should be considered? YOUR ANSWER CORRECT ANSWER Add-on interest method Amortization N-ratio method Installment 31. An individual wants to minimize the likelihood of a loss while also reducing a premium payment on a personal property insurance policy. What can the individual do to accomplish both goals? Accessibility Policy Accessibility Settings

12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 11/20 YOUR ANSWER CORRECT ANSWER Increase the deductible Cover fewer named perils Reduce total coverage Install a security system 32. An individual purchased automobile insurance and was later involved in an accident that resulted in damage to the vehicle. The driver received a $750 check from the insurance company that covered the cost of repairs. Which risk management technique does this exemplify? YOUR ANSWER CORRECT ANSWER Risk acknowledgment Risk transfer Risk reduction Risk retention 33. An individual wants to balance insurance premium costs for bundled auto and home insurance. The individual has credit scores above 780 and an emergency fund of $3,000. What should the individual consider when evaluating discretionary spending and overall budgeting? YOUR ANSWER CORRECT ANSWER Investing in high-yield assets to increase income generation Increasing savings to cover potential deductible costs Reducing coverage to minimize the amount of deductible possible Separating policies to minimize each deductible expense 34. A 65-year-old individual is deciding whether to purchase Medicare Part B coverage. The individual had an average of ±ve doctor visits per year for the past two years and occasional outpatient care needs for a minor injury. Which situation would make Medicare Part B coverage a prudent choice for this individual? Accessibility Policy Accessibility Settings

12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 12/20 YOUR ANSWER CORRECT ANSWER If the individual has suf±cient savings for high out-of-pocket medical expenses If the individual is already on an employer-sponsored plan If the individual is on a limited state-sponsored ±xed income If the individual can afford an additional premium and increased care needs 35. A 45-year-old employed individual has two concurrent goals of maximizing savings and protecting future income. The individual is concerned about potential health-related expenses later in life and wants to balance this with minimizing current expenses. How can insurance coverage be selected to align with these goals? YOUR ANSWER CORRECT ANSWER By choosing a high-deductible health insurance plan and buying long-term care insurance By maximizing retirement account contributions and choosing low- premium healthcare plans By purchasing umbrella policy coverage for all other non-healthcare related needs By selecting healthcare plans without coinsurance and contributing to a health savings account 36. A couple wants to balance adequate life insurance amounts, reevaluating the amount every two years. Over a decade, both individuals’ incomes steadily increased by 25% to a total of $150,000 a year, liquid assets increased by 75% to $200,000, and property value increased by 5% to $400,000. How were the insurance obligations of the couple affected every two years using the needs-based approach? YOUR ANSWER CORRECT ANSWER Overall income increased and coverage requirements were reduced. Spousal income replacement increased along with premiums. Joint income increased, lowering loss liability risk. Value at risk reduction caused declining premiums over time. Accessibility Policy Accessibility Settings

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12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 13/20 37. An individual has a whole life policy with a death bene±t of $200,000 and a cash value of $100,000. The individual requires $15,000 in cash to cover an unexpected expense but has only $5,000 in liquid assets. Which information can be compared when deciding how to borrow the extra $10,000? YOUR ANSWER CORRECT ANSWER The interest on a policy loan and interest on a personal bank loan The risk of failing to repay a policy loan and decreases in premium The reduction of future coverage and bene±ts of lower future taxes The ability to replace funds and the likelihood of future debt increases 38. A 30-year-old individual with a chronic health condition and two young children is consulting a ±nancial sales agent regarding the appropriate type of life insurance and other suitable ±nancial products. The agent presents a variable universal life policy, a ±xed annuity with disability income rider, and a straight whole life policy with an accelerated death bene±t. How can the risk pyramid be used to evaluate each insurance policy? YOUR ANSWER CORRECT ANSWER By ranking subaccount investment risk relative to the individual’s own risk tolerance By evaluating the fees for each option relative to the risk to the individual’s budget By examining the volatility risk of the invested portion of each option and cash value By considering bene±ciaries’ needs and the risk of nonpayment due to premium lapse 39. An individual noticed an unrecognized transaction in a checking account and noti±ed the bank to investigate potential EFT (electronic funds transfer) error. Upon further review, the individual noticed the transaction occurred once a month for the past year. How could the account have been protected from unwanted transactions of this nature? YOUR ANSWER CORRECT ANSWER By preventing access to the debit card connected to the account By avoiding automatic billing and subscription services with hidden fees Accessibility Policy Accessibility Settings

12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 14/20 YOUR ANSWER CORRECT ANSWER By enabling an automated noti±cation procedure to warn of the low account value By guarding all passwords to bank accounts closely to limit possible fraud 40. A healthy 28-year-old individual wants to protect assets while prioritizing the accumulation of net worth. The individual recently had a child with a spouse and is reassessing how much to contribute to various ±nancial products to accomplish these goals. How can resources be allocated to protect assets and accumulate net worth? YOUR ANSWER CORRECT ANSWER By buying a term life policy and investing extra income, maximizing tax- quali±ed accounts By purchasing a universal life policy that names the spouse and child as bene±ciaries By choosing a low-deductible health plan and participating in group life insurance By reducing risk across investment accounts and buying a whole life insurance policy 41. Eva has invested equal amounts in three different stocks. The value of one of the stocks has dropped to $0, and the other stocks have held their values. What is the total decrease in Eva’s portfolio? YOUR ANSWER CORRECT ANSWER 25.50% 33.33% 50.00% 100.00% 42. What is an example of a dollar-cost averaging investment strategy? YOUR ANSWER CORRECT ANSWER Buying $50 of Kretsmart’s stock every month Accessibility Policy Accessibility Settings

12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 15/20 YOUR ANSWER CORRECT ANSWER Buying $100 of Alliah Company’s stock when the price dropped Buying $25 of Paradigm Toy’s stock with money from a birthday gift Buying $75 of Endothon Company’s stock after a company announcement 43. What is a bene±t of a dollar-cost averaging investment strategy? YOUR ANSWER CORRECT ANSWER Avoiding market risk Avoiding business risk Guaranteeing pro±tability Purchasing at below-average costs 44. What is an example of a bull market? YOUR ANSWER CORRECT ANSWER Prices in the securities markets have dropped 15% in the last year. Prices in the securities markets have dropped 20% in the last year. Prices in the securities markets have risen 25% in the last year. Prices in the securities markets have risen 10% in the last year. 45. The price of a stock that Maria purchased has ²uctuated rapidly in the last week. Which type of scenario does this describe? YOUR ANSWER CORRECT ANSWER Black swan event High market volatility One-time investment Low market volatility 46. An individual tries to time the market ahead of a company’s big announcement. Accessibility Policy Accessibility Settings

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12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 16/20 Which type of investment philosophy does this describe? YOUR ANSWER CORRECT ANSWER Gami±cation Diversi±cation Active investment Buy and hold 47. Lulu buys $300 worth of Kretsmart’s stock each month for three months. The prices per share are $15, $20, and $25 in months 1, 2, and 3, respectively. What is Lulu’s average share cost after three months of investing? YOUR ANSWER CORRECT ANSWER $18.50 $19.15 $21.75 $22.25 48. What is one disadvantage of a SIMPLE IRA for organizations instead of a de±ned contribution plan? YOUR ANSWER CORRECT ANSWER Limited to 100 or fewer employees Unlimited regulatory oversight Restrictive annual plan compliance Limited to 10 investment options 49. An individual has a 401(k) plan but decides to switch employers. What will happen to this individual's retirement plan under portability? YOUR ANSWER CORRECT ANSWER The bene±ts will be terminated. The worker will receive a lump sum. Accessibility Policy Accessibility Settings

12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 17/20 YOUR ANSWER CORRECT ANSWER The worker will remain in the existing plan. The bene±ts can be rolled over. 50. A state university conducts annual due diligence and seeks proposals for a new provider of their retirement plan. Which type of plan will providers use to illustrate retirement plan capabilities? YOUR ANSWER CORRECT ANSWER 403(b) 401(k) 457 501(c)3 51. What is an advantage of de±ned contribution plans to help employees achieve retirement goals? YOUR ANSWER CORRECT ANSWER Automatic escalation Graduated vesting Portability Matching 52. An individual compares a 6.2% FICA tax withholding to a de±ned contribution plan deferral of 3% with an employer matching contribution. How are FICA taxes and matching contributions comparable? YOUR ANSWER CORRECT ANSWER They are invested in securities. Eligibility is limited. There is reduced plan compliance. Funds are held in custody. Accessibility Policy Accessibility Settings

12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 18/20 53. How does a fully insured status impact the amount of a worker's allowed bene±ts? YOUR ANSWER CORRECT ANSWER Insured to receive bene±ts Uninsured for maximum bene±ts Ineligible for survivor’s bene±ts Eligible for increased bene±ts 54. An individual with a de±ned contribution balance of $15,000 has a debt of $5,000 in arrears rent and has been served eviction documents. Which de±ned contribution penalty-free withdrawal would help this individual? YOUR ANSWER CORRECT ANSWER Retirement loan Lump sum distribution Hardship withdrawal In-kind transfer 55. An individual is transferring to a new job but currently has a 401(k) with the previous employer. The individua wants to avoid immediate taxes and have more ²exibility to invest in individual stocks and ETFs. Which action can be taken to accomplish these goals? YOUR ANSWER CORRECT ANSWER Relocating the 401(k) account balance into a brokerage account Receiving the 401(k) account balance as a lump sum distribution Rolling the 401(k) account balance into an IRA account Placing the 401(k) account balance into a health savings account 56. An elderly parent has become medically incapacitated. Their adult children do not consider it safe for them to live alone, make medical decisions, or manage their ±nances. Which action can adult children take to help their elderly parent? Accessibility Policy Accessibility Settings

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12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 19/20 YOUR ANSWER CORRECT ANSWER Seeking legal guardianship Creating an advance health directive Filling out a living trust Obtaining trusteeship 57. A person has worked full-time at a company for nine years. The person has a goal to retire and travel the world. How much longer must the person work to be fully quali±ed to receive Medicare bene±ts when turning 65 years of age? YOUR ANSWER CORRECT ANSWER 1 year 3 years 5 years 7 years 58. Which type of income protection does a spouse have upon the death of a retiree who is receiving monthly retirement income from a de±ned bene±t plan? YOUR ANSWER CORRECT ANSWER Trustee bene±t Joint tenants bene±t Survivor bene±t Interested party bene±t 59. A worker has a 401(k) plan at a technology company. The ±rm had an excellent sales year. The worker is surprised upon noticing a $10,000 deposit made by the employer into the worker’s 401(k) account at the end of the year. Which type of bene±t is described in this scenario? YOUR ANSWER CORRECT ANSWER De±ned contribution bonus Accessibility Policy Accessibility Settings

12/31/23, 4:58 AM WGU Student Portal https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/11222126/assessmentCode/PCFC/testDate/1703678804 20/20 YOUR ANSWER CORRECT ANSWER De±ned bene±t bonus Pro±t sharing plan Health savings plan 60. A 35 year old works for a state government entity. To better prepare for retirement, the worker decides to take advantage of the retirement plan offered by the employer. Which type of retirement plan is described in this scenario? YOUR ANSWER CORRECT ANSWER 401(k) 403(b) Simpli±ed employee pension IRA 457 61. At the age of 72, a retiree must make their ±rst required minimum distribution (RMD) withdrawal from a traditional IRA account. The RMD withdrawal percentage at age 72 is 3.65% of the account balance. The retiree has a $750,000 balance at age 72. What is the dollar amount of the retiree’s RMD withdrawal? YOUR ANSWER CORRECT ANSWER $24,990 $25,331 $27,375 $29,334 Accessibility Policy Accessibility Settings