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CFP Practice Exam 1 Questions and Answers 100% Solved $11.49   Add to cart

Exam (elaborations)

CFP Practice Exam 1 Questions and Answers 100% Solved

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CFP Practice Exam 1 Questions and Answers 100% Solved According to CFP Board's Code of Ethics and Standards of conduct, A CFP Professional may represent the CFP Professionals or the CFP Professional's Firm's compensation method as "fee only" only under which set of circumstances? - The CFP Pro...

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  • October 10, 2024
  • 18
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • CFP
  • CFP
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JOSHCLAY
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.

CFP Practice Exam 1 Questions and

Answers 100% Solved


According to CFP Board's Code of Ethics and Standards of conduct, A

CFP Professional may represent the CFP Professionals or the CFP

Professional's Firm's compensation method as "fee only" only under which

set of circumstances? - ✔✔The CFP Professional and the CFP

professional's firm receives no sales related compensation in connection

with any professional services the CFP professional or the CFP

Professional's firm provides to clients.

Henry wants to have $1m in investment assets in his taxable account when

he retires in 10 years. Currently he has $100K invested in his account. He

anticipates this account will appreciate at an annual rate of 10% before

taxes or 8% after taxes. How much must he invest at the end of each

month to achieve his goal? - ✔✔Answer: $4,253.82



Keystrokes

N 120

, ©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.

I: 8/12

PV: -$100K

FV: $1,000,000

PMT:

Sydney is deciding whether to buy or lease a vehicle for her personal use

only. If Sydney's interest rate is 8% per year, which of the following options

would be the least expensive way to acquire the new car?



1. She should buy the car w/ no down payment and $700 monthly

payments for 5 years.



2. She should buy the car with $6,000 down payment and $600 Monthly

payments for 5 years.



3. She should lease the car for $2,000 down, $500 monthly payments for 5

years, and a $10,000 payment at end of lease.

, ©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.

4. She should lease the car for $4,000 down, $550 monthly payments for 5

years, and $5,000 payment at the end of the lease. - ✔✔Answer: 3 is the

best choice



Calculation:

End Mode

N: 60

I: 8/12

PMT: $500

FV: $10,000

Solve for PV which equals $31,371.

The total present value for this option is $31,371 + $2,000 down payment =

$33,371

which of the following strategies will most likely increase a client's cash

flow?



A. refinance the client's 2 year old 30 year mortgage at 7% with a 15 year

mortgage at 6.5%

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