The Last Step in the Financial Planning Process Is To

question 85

Multiple Choice

The last step in the financial planning process is to:

• A) develop financial plans and strategies to achieve goals.
• B) use financial statements to evaluate results of plans and budgets, taking corrective action as required.
• C) implement financial plans and strategies.
• D) redefine goals and revise plans and strategies as personal circumstances change.
• E) periodically develop and implement budgets to monitor and control progress toward goals.

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Definitions:

Decimal Places

The digits located after the decimal point in a number, representing parts of ten.

Compounded Continuously

Compounded continuously refers to the calculation of interest earned on an investment or loan where the interest is added perpetually at every possible moment, following the formula \(A = Pe^{rt}\), where \(A\) is the amount, \(P\) the principal, \(r\) the rate, and \(t\) the time.

Saving Account

A type of bank account where money is deposited to earn interest over time.

Decimal Places

The tally of numbers present right of the decimal point in a given number.