Ugba 135 Final Exam (Fall 2021) Questions And Answers With Complete Solutions.

What is refinancing a mortgage? {Ans: Replacing an existing mortgage with a new mortgage, usually in order to lower the interest rate or monthly payment Can also use to consolidate first and second mortgages or to borrow money using equity in the house}What is part A of Medicare? {Ans: Free to seniors Covers major items such as hospital, skilled nursing, home health care, etc. though not at 100%}What is dollar-cost averaging? {Ans: Investing a set amount of money in shares of a stock on a regular time schedule - mathematically buys more shares at lower prices and is essential to successful long term investment program}How is part D of Medicare financed? {Ans: 25% by monthly premiums, 75% by taxes Those with adjusted gross income exceeding about $85,000 pay a monthly surcharge for the right to purchase part D coverage ($12-$67)}What is the percentage of the population over 65 by 2030? {Ans: 20%}What is the PEG rate? {Ans: Compares P/E ratio to the Growth rate by simple division A PEG rate of 1.0 means current market price may not be reflecting stock's future growth potential}